Battles with Integrity

[using the House MD icon, because though I don't have an economics icon, I do have one with a medical bent]

Economics is about the distribution of goods and services, with the intent that this distribution be as efficient as possible. The major mechanisms for this involve the manipulation of supply and demand, or rather the idea that supply and demand will adjust themselves to come to an equilibrium where the system is efficient (generally, economists' goal is maximum efficiency).

bradhicks offers a reasonable suggestion that artificial restrictions on the number of graduating MDs serve to increase the cost of health care in the US. Leaving aside his class-based points of argument regarding the motivations behind this restriction (valid tho' they may be), the fact remains that our population has grown by 50% without a concurrent rise in the number of doctors. It stands to reason that, given rising demand, a constant (not rising) supply of MDs will command a higher price on the market, thereby causing an increase (perhaps one of several causes) in healthcare cost. Brad's post is worth checking out. I'm not sure his answers are all the answers, but it makes for an illuminating thought experiment.