The High Price of Doctors: A Disease of Regulation

What’s driving the high price of doctors: market inequality or government entry restrictions?  My co-bloggers’ debate reminds me of a random encounter with some striking evidence: The Digest of Education Statistics‘ Table 294.

If you peruse this table, you’ll discover that total number of new M.D.s per year has been virtually flat for 30 years.  During this period, population increased over 30%.  As a result, the new M.D./population ratio has declined for decades.

If you’re not horrified, consider that the senior population – doctors’ best customers – increased by over 50%.  As a result, new M.D.s per senior fell by about a third over the last three decades:

This is exactly what you’d expect when government imposes rigid numerical quotas in the face of sharply rising demand: a constant quantity regardless of market conditions.

If you’re still not convinced, know this: Over the last thirty years, new female M.D.s have sharply increased.  How is this possible given the stagnant total?  Because the number of new male M.D.s dropped like a rock!  New male M.D.s per person are down by over 45%.

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