Comments on: Even More Econ http://aftercorbu.com/2008/02/19/even-more-econ/ a machine for thinking in Tue, 07 Feb 2012 08:59:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Quixote http://aftercorbu.com/2008/02/19/even-more-econ/comment-page-1/#comment-299 Quixote Fri, 22 Feb 2008 04:45:47 +0000 http://aftercorbu.com/2008/02/19/even-more-econ/#comment-299 Thank god for your lack of contrarian-ness, or my post might have gotten smacked around a little bit. Of course the problem is that if there was perfect information as those neo-classical "contrarians" stipulate, and reputation stood in for certification, successful doctorhood would <i>still</i> require extensive schooling and above-average abilities, and surgeons' power would not have decreased one bit, so they would still be paid handsomely. It's only if we lift regulation and consider doctors in reality -- where no one have a clue as to their quality -- that we could suppose wages would go down. Of course the downsides of not being able to ensure your surgeons quality are both obvious and terrible. Thank god for your lack of contrarian-ness, or my post might have gotten smacked around a little bit.

Of course the problem is that if there was perfect information as those neo-classical “contrarians” stipulate, and reputation stood in for certification, successful doctorhood would still require extensive schooling and above-average abilities, and surgeons’ power would not have decreased one bit, so they would still be paid handsomely.

It’s only if we lift regulation and consider doctors in reality — where no one have a clue as to their quality — that we could suppose wages would go down. Of course the downsides of not being able to ensure your surgeons quality are both obvious and terrible.

]]> By: Corey http://aftercorbu.com/2008/02/19/even-more-econ/comment-page-1/#comment-298 Corey Fri, 22 Feb 2008 03:24:31 +0000 http://aftercorbu.com/2008/02/19/even-more-econ/#comment-298 If I were a more contrarian and zealous free market champion (like, say, Milton Friedman), I'd argue that the wage problem is the result of <i>too little</i> market freedom and not too much. The certification process for doctors (medical school) is an unnecessary impediment that simply jacks up the wages of doctors without adding social utility. An open market for doctors could provide the same service (using reputations as a guide to good and bad doctors) and their wages would reflect the cost of inputs of their service--not the effort expended acquiring certification which sets an artificial level for wages. Thus, doctors' wages would be closer to coal miners and coal miners would pay less to see doctors, making them wealthier. But I am not that contrarian. If I were a more contrarian and zealous free market champion (like, say, Milton Friedman), I’d argue that the wage problem is the result of too little market freedom and not too much. The certification process for doctors (medical school) is an unnecessary impediment that simply jacks up the wages of doctors without adding social utility. An open market for doctors could provide the same service (using reputations as a guide to good and bad doctors) and their wages would reflect the cost of inputs of their service–not the effort expended acquiring certification which sets an artificial level for wages. Thus, doctors’ wages would be closer to coal miners and coal miners would pay less to see doctors, making them wealthier.

But I am not that contrarian.

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