Why drum corps will only get more expensive

[skywhopper]

I read this interesting article about the reason certain parts of our economy seem to get more and more expensive, even though we tend to believe that productivity should endlessly rise throughout all fields.

The idea is something economist William Baumol came up with 50 years ago. Although manufacturing gets better and better, and electronics and medicine and digital information can be made for lower and lower costs and do more and more work as time goes on, there are certain jobs and tasks--being a policeman, doctor, teacher, or musician for example--that just cannot be made markedly more efficient with technology. And thus the costs of education, health care, police protection, fire protection, and live entertainment are inevitably going to grow faster than any other sector of the economy.

No matter how good technology gets, we may be able to get better instruments and uniforms for less money thanks to technological improvements, but with drum corps (and any musical performance group) there are very few efficiencies to be had. You still have the same number of performers, and they take up the same space on the buses, and you need the same number of bus drivers, techs, instructors, designers, and admin staff to support them. Meanwhile, all those people's salaries have to increase to keep up with the growing productivity in the rest of the economy, and no matter how good your technology, you can't perform more shows than you have days of the summer.

Now of course, DCI has embraced technology that does counterbalance these effects somewhat--online streaming and cinecasts are great ways to generate more revenue using technological efficiencies. But their effects are unlikely to outstrip the growth in costs. And what technological benefits the corps realize from being able to train their performers faster and better go into not more performances or more revenue, but instead into higher demand and more impressive productions, which raise the costs still further.

Anyway, it's an interesting analysis I wanted to share, as it explains a lot of the intractable problems confronting DCI and all live performance arts throughout the world.

[BozzlyB]

By the year 2025 if DCI is still around membership dues will be approaching 10,000. per year.

I say "if" DCI is still around, because at some point the dues will reach such a tipping point that there will be no sustainable membership capable of affording this as an annual expense.

Here's a question for ya, how high do the dues have to get before the experience is no longer worth the financial burden?

Edited October 10, 2012 by BozzlyB

[Shadowtron]

I am sure in 1850, 1900, and 1950 there were many who thought we had reached a technological and productivity peak. The real reason prices grow is inflation of the money supply, or the mix of supply and demand.

I find it interesting that you site public sector skills as examples.

Edited October 10, 2012 by Shadowtron

[skywhopper]

I am sure in 1850, 1900, and 1950 there were many who thought we had reached a technological and productivity peak.

Perhaps you misread the article, or I summarized it poorly. That's not what it's arguing at all. Rather that some fields will necessarily have a differentially slower growth in productivity, and some tasks (like, playing a Mozart sonata) are impossible to grow in productivity. Meanwhile, the fact that other tasks are growing in productivity exponetially is where we run into the effect described.

The real reason prices grow is inflation of the money supply, or the mix of supply and demand.

Well, the *real* reason is that by policy our government banks which control the money supply choose moderate inflation as highly preferable to any level of deflation. Given population and productivity growth if the money supply did not grow, all but the richest would quickly be choked out of the official economy--or more likely productivity would falter and population would level off as the poorest people starved to death. And deflation destroys the incentive to loan or invest money, which is the entire basis of a capitalist economy. Without inflation, our economy would quickly implode.

I find it interesting that you site public sector skills as examples.

Well, those examples are from the article. Live entertainment is an exception. As is medical care. And most of the public sector examples have private sector correlates.

I guess the main point is that for the costs of any particular activity or product to stay stable, productivity needs to increase at a rate comparable with the broader economy. Thus, mom and pop corner stores are replaced by supermarkets. Manufacturing must grow more and more automated (or utilize cheaper and cheaper labor). If the number of people required to provide a service stays the same, those costs will skyrocket. Thus, the increasing costs of education, drum corps, medical care, and concert tickets.

[drumcorpsfever]

There are a number of things that drum corps has done to improve the efficiencies and economies of the activity.

Here's a few:

Drum Corps Co-Ops:

A number of corps have worked together to negotiate bulk pricing of food services. As such, money is saved and kids eat better as result.

Strategic Alliances:

DCI and DCA within the past year have formed a strategic alliance, not to mention BOA.

Corps partnering:

Probably more than ever before, corps understand the need to work together. The competitive sprit will continue to live between corps, but I sense, more than ever, each corps realizes that the best way to ensure a bright future is to work within a collective spirit. We've seen many examples over recent years where corps have helped out one another - be it a food trailer here, facilities there, or meals for hungry kids. Also, some of the top corps share recruiting prospects and assist with fledgling corps more than what many of us realize.

Lastly, never discount the value of a spirited, loyal, and enthusiastic base. We're out here!

One thing the activity can always use, though, is the next Bill Cook.

Edited October 10, 2012 by drumcorpsfever

[Tim K]

We can look at the future costs of drum corps, and yes, the figures could be staggering. However, the rising costs of drum corps in the future and keeping up with musical technology may not be as much of a challenge as what could have an effect in the next year or two--changes in financial aid for college.

Most young people, even from the most comfortable backgrounds get some kind of financial aid. With college tuition ranging anywhere from $10,000 per year to $50,000 and higher when costs are included, this is a necessity. If you speak with college financial aid directors, they will tell you that things are already tight and will only get tighter. More people will be applying for scholarships and government grants will be less available. This would have a direct impact on kids who march who receive financial aid and ,may determine whether or not they can spend a summer marching. It will have an indirect effect as well. Already part time jobs for college students are few getting fewer and fewer. Kids who worked in the off season to pay for drum corps and have spending money to boot may not find jobs and if they do, the funds may be needed for tuition.

If you actually calculate what kids pay to march and what they get in return--the opportunity to grow as musicians or performers, the ability to work as a team, the opportunity to travel, and meals, room, and board (I know they are less than ideal at times), drum corps is a bargain. But if the choice is between marching or going to college, drum corps becomes a luxury. This is the case for many already, but it could be more and more of a reality in the upcoming seasons.

Edited October 13, 2012 by Tim K

[SACMellos2010]

It is all relative and tied to inflation.

Wages now versus the 50, 70, 90.... are higher now and so is everything that has to be purchased and used by not only drum corps but also every other person and company in the world.

Drum corps dues inflation definitely has been far less than that of education costs. Education costs are another area that have to be taken control of or at some point it will not make sense for some kids to go to college and take on incredible amounts of debt for a profession that will never really cover this initial cost. JMO

[kansasDC]

I agree with Tim K. I am really glad my son is coming up on his age-out year and through his first semester junior year in college. Both drum corps costs and college costs have skyrocketed in his eight years of DCI and I do not know if we could handle many more. The money he spends to do corps, plus the lost summer income, are significant. And $20K tuition at state schools will only get higher.