Competition isn't for everyone. The salaries of high-end professionals are often artificially protected by public policy, without benefit to the public.
Over the past forty years, US trade deals have been negotiated to expose manufacturing workers to international competition and put downward pressure on their wages, while protecting high end professionals from both domestic and foreign competition. This has increased wage disparity and inequality between low and highly educated workers in the US.
Dr. Baker compares the salaries for high end professionals (physicians, lawyers, dentists, etc.) on the income distribution. Barriers to entry like licensing regulations have been put in place to protect high-earning medical practitioners from both domestic and foreign competition. Insurance regulations allow specialists to set their own compensation. Lawyer incomes benefit from unnecessary complexity in legal processes, tax codes and intellectual property laws. These are all state policies that have protected the earnings of highly educated professionals.
By contrast, manufacturing jobs have declined in the US, and there has been downward pressure on the wages of less-educated workers. Much of it is due to the increased competition brought about by foreign trade deals negotiated over the past few decades. This was a conscious policy choice. The absolute decline in incomes in low-wage sectors was already predicted by the famous Stolper-Samuelson theorem in international trade theory.