Healthcare Costs vs. Wages and Inflation

It is always interesting to compare wages to inflation to see if we are actually earning more in real dollars today than in the past.  But, that comparison is relatively tame year to year if you compare it to healthcare costs.  As I have mentioned before, those costs have started to slow down from double digit growth to single digit growth.  The last time that happened was in the mid-90s with a huge rise in tightly managed care programs.  (And, like the retirement argument, compounding is powerful so several years of double digit growth compounds very quickly to push costs out of whack with earnings growth.)

Here is a good chart I found yesterday which shows it.


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