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Unformatted text preview: S Congress under the Flexner Act) to grant/revoke med school licenses and the number of doctors “permitted”
to graduate from licensed med schools per year. In essence, the AMA is restricting the supply of doctors in order
to raise the “price of doctor services”. Here’s one health care cost driver that you never hear about. Gee, I
wonder why? NYC & London cabs: These cities have various methods to limit the supply of taxi cabs. To operate a cab
in NYC you need a “taxi medallion”. For the last 70 years, the number of medallions in NYC has remained fixed at
about 12,487 medallions(!) in a city with a population close to 10 million3. To operate a cab in London you must
pass an exam which requires you to memorize all streets in London (including where you can take left turns, one
ways, etc.) and you are expected to, from memory, give the shortest route from point A to point B. The only
issue is that this exam is still in place despite the fact that one can use a GPS system to get around! 3 Boston and Paris too have a l...
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This document was uploaded on 01/19/2014.
- Fall '14
- The Land