This makes intuitive sense to me. I think a related factor is that as you add regulations and red tape (for example in medicine and finance[0]) you create zero-

This makes intuitive sense to me. I think a related factor is that as you add regulations and red tape (for example in medicine and finance[0]) you create zero-sum industries that don't increase productivity but that everyone has to engage with in order to compete. This raises barriers to entry and keeps competition from lowering prices. It's no surprise that doctors and people working in financial services have seen their pay rise much more than the rest of the population over the past few decades. [0]: Obviously you need some regulation, but a lot of regulation serves to keep others from competing effectively rather than protecting consumers.