My mechanic, who now charges $105/hour, says he used to make more money when his labor was $35/hour, because of tax increases. Even allowing some room for exaggeration, it is an interesting point. And he does charge book time.
At any rate, I can't say I"m happy paying that much, but I have to say I don't mind the rate itself, because even though it's probably slightly higher than average for my community, I have only had to return the car once for something he worked on in the 15-20 years and 4 cars I've taken to him (2 starters on the Sienna went out prematurely, one within warranty period so it was free). He has returned my cars with no diagnostic charge--multiple times, he said the brake noise meant nothing and my breaks had 40-60% more life in them. Someone who is honest & competent will save me money in the long run, regardless of their labor rate.