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I'm aware that that many of doctors' high salaries are due to the government creating artficial shortages and I support less government regulation in order to make helathcare better and more affordable.

That having said, I don't think high doctors' salaries are the most important societal problem in healthcare. Years and years of studying, long working hours, great responsibilities, saving lives and healing patients: doctors are welcome to their high salaries.



I read once that doctor salaries account for 30% of the cost of healthcare. Its significant.



Thanks! Had that wrong, or remembered it incorrectly. NYT says 10% in another article.

Its still considerable. Have to take into account that a 5% reduction in price can lead to a much higher increase of consumption than 5%, particularly on things like healthcare in the us that have clear excess demand.


How is it possible for 5% decrease in price to cause ore than 100/95 consumption, if medical care is already a top priority for spending?


Because there are people that do not get healthcare today because it is above their affordability.

If net income for a large amount of people is 100 U$S, and healthcare service costs 101U$S, the jump from 101 to 96 would surge in demand.

Medical services have low elasticity but there are millions of people in america not getting medical service.




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