Comment by opo

Doctors are just not a good example to use though as an example here. Healthcare costs have risen as one would expect due to Baumol’s cost disease, but Dr salaries have generally not gone up as much as one would have expected. Medicine is such a tightly controlled market that lots of things are distorted - Medicare decides how much they will compensate, etc. Many more qualified people would like to become Drs but are not allowed too (From 1980 to 2005, the number of medical students stayed flat despite population increases - this is slowly been increasing the last 20 years along with the number of residency positions.)