If you see a chart that aggregates long-term inflation trends by sector, you will know that the two sectors that have seen the highest cost increases over the last 30 years are health care and higher education. What do these two sector have in common? Both are dominated by government spending and regulations (especially subsidize student loans for higher ed). In other words, market forces that might discipline both sectors were obliterated. Last week we noted the bloat in K-12 administration, but that’s nuthin’ compared to administrative bloat in health care:
