Baumol's Cost Disease: Workforce Reallocation (2D)

The 3D version of this simulator plots the relative unit-cost of healthcare vs manufacturing output over time. This 2D companion derives a different, complementary consequence of the same productivity-growth gap: a two-sector growth model in which a fixed national workforce must reallocate itself toward the stagnant sector to keep real output growing evenly, because each healthcare worker's output stops improving while each manufacturing worker's keeps compounding. The workforce grid shows workers migrating from manufacturing (blue) into healthcare (green) in a fixed hiring order as the year slider advances, while the chart contrasts the ever-rising nominal jobs/GDP share against a real physical-quantity share that, by construction, never moves at all — the gap between those two lines is exactly what "cost disease" means. Adjust each sector's productivity growth rate and the initial healthcare employment share to see how fast — or whether — the reallocation runs away.