Learned from Is satisfactory healthcare (currently) unattainable? – Economist Writing Every Day
Healthcare is example 1A of Baumol’s curse in the modern world. No matter how much our economies grow, the cost of labor will grow commensurately, meaning healthcare will keep getting more expensive until we find a significant capital substitute for labor.
From wikipedia
In economics, the Baumol effect…is the tendency for wages in jobs that have experienced little or no increase in labor productivity to rise in response to rising wages in other jobs that did experience high productivity growth. In turn, these sectors of the economy become more expensive over time, because the input costs increase while productivity does not. Typically, this affects services more than manufactured goods, and in particular health, education, arts and culture.