The Baumol effect does not imply that the value of the doctor is not higher today. It just means that on a per-unit basis physicians are not more productive (a

The Baumol effect does not imply that the value of the doctor is not higher today. It just means that on a per-unit basis physicians are not more productive (and possibly less today thanks to EHR). A doctor can still only see 1 patient every 15 minutes just like they could 50 years ago. A BMW factory that produces 100 cars/day might be more valuable than a Toyota factory producing 100 cars/day, but it wouldn't be more productive on a per unit basis.