The growth of service industries : the paradox of exploding costs and persistent demand Problems arise if budgets for services are held constant whilst prices rise. Education cultural activities and health services are under constant budgetary pressure. The authors argue that the price of commodities is linked to demand and price increases would therefore seem to threaten the very existence of these services. The paradox of these services is that in spite of their exploding costs demand persists pt. 1. The amazing vigour of the services pt. 2. Supply side reasons for employment shifts pt. 3. The cost disease of the services pt. 4. Demand side reasons for services persistence pt. 5. Conclusions