Doctor Salaries During the Great Depression: A Historical Analysis

The Great Depression, which affected the United States from 1929 to the late 1930s, had a profound impact on various sectors of the economy, including healthcare. During this period, the income of doctors saw significant declines.

According to a study published by the National Bureau of Economic Research, the average annual income of physicians before the Great Depression was around $5,000, which would be equivalent to approximately $100,000 in 2023 when adjusted for inflation. However, during the depths of the Great Depression in the early 1930s, the average annual income of physicians fell by about 45%, to around $2,750 ($55,000 in 2023).

While doctors still earned more than many other occupations during this period, their income reductions were significant and placed a strain on their livelihoods and ability to provide care to patients. The decline in medical income was caused by a combination of reduced demand for healthcare services due to widespread poverty and increased competition from new doctors graduating from medical schools.