What do they have in common? Why do you think that is?
The top 30 highest paying jobs are all jobs in the medicine industry. They all require at least 5 years of higher education and when you are done, you are considered a professional. I also believe that these jobs require a lot of responsibility because sometimes you have other people’s lives under your care. And a person that goes to a hospital doesn’t want anyone who isn’t a professional and undergone lot of learning and studying to take care of the surgery or chemotherapy.
MDs in the US receive between 2 and 5 times as much in salary in comparison with most European countries and Canada. One ...view middle of the document...
And by that I mean that the surgeon can more efficiently do safer surgeries. There has also been an administrative technology ‘revolution’ where hospitals and doctors can more easily communicate with other doctors and discuss ways to make everything safer and cleaner and improve the rate of success. Especially for transplantations, that market is now global. A person can receive a kidney from the other side of the globe. And maybe in 50 or 150 years, machines will do everything. This information I take from diverse sci-fi movies where there exist machines that can basically do everything. No human supervision or interaction is needed. The machine can cut, remove and stich it up afterwards. This is now just fiction but in 1850, no one believed that the horse and wagon would become obsolete.
This factor would lower the demand for medical students. I believe that technology is a factor that can lower the demand of labor in almost every industry. Technology is important and good for humanity of course but perhaps not in terms of labor. Even though the population is increasing day-by-day until it will reach 10 billion people which many professionals thinks will be the maximum amount of people living on our earth. (See Swedish statistician Hans Rosling, https://www.ted.com/talks/hans_rosling_on_global_population_growth?language=en) This increase of humans doesn’t necessarily mean that we need more labor in the hospital industry. With increasing technology, 1 doctor today can do what 10 doctors did 50 years ago. And 1 doctor in 50 years can do what 10 doctors do today.
We can see that the supply of medical students is fairly stable – it doesn’t increase very much – why do you think that is?
As mentioned above, the number of medical schools is decreasing in the United States while the number of medical students remains fairly constant. The number of applications is rising every year by more than 21% between 2003 (34,786) and 2008 (42,231) but unfortunately everyone did not get admitted to attend the schools. In fact students admitted did only go up by around 9% (from 16,538 to 18,036) over the same period.
So one reason why the US is having a “health care crisis” is due to the fact of rising medical costs and that they have the world’s highest physician salaries is that they turn away 57.3% of applicants to medical schools. You could almost call it a “medical cartel” which restricts the supply of the number of physicians and thereby gives its members monopoly power to charge above-market prices for their services.
Consider what you have just said about the supply and demand for medical students and also consider the elasticity of demand and supply for them and draw a supply and demand graph showing the trends in the market for recently graduated medical...