No Runny Eggs

(H/T – Michelle Malkin)

Investor’s Business Daily reports that, in its latest IBD/TIPP poll, 45% of doctors surveyed said that they would consider leaving their practice or retiring early if a Democratic version of health care reform were passed. They also found that 65% oppose the plans the Democrats have out there, and 71% (or 72% whether one believes the graphic or the text) don’t believe that 47 million could be added to the insurance rolls under government control with higher-quality care for less money.

Let’s focus on those who would leave early. Early last year, The Monster took a look at what happens to the supply-demand curves when government interferes with prices. The same principle exists when supply is artificially-tampered with.

First, let’s restate what happens when the supply of a service and the demand of same are in harmony. The price and quantity are at an equilibrium, as shown by this graph from Monster:

Note where the supply curve (S) and demand curve (D) meet. That is the point of equilibrium, with a specific price (P) and quantity (Q).

Now, let’s take a look at what happens when the quantity is artificially-capped below the equilibrium point:

Because the supply does not meet the demand, there is a shortage. The red line connecting the supply curve and the demand curve represents said shortage, with a corresponding increase in price once the two meet.

Of course, that assumes that prices will be allowed to rise to meet the demand. What happens when both the quantity and the price are artficially-capped? Let’s take a look:

The blue line represents an unmet shortage. If you prefer to use a single word for that, “rationing” would be a good choice.

Revisions/extensions (9:58 am 9/16/2009) – Shoebox pointed out last month that even if no physicians departed early, we would be 13% short on the required number of physicians the day that ObamaCare goes into effect. Talk about your uh-oh moments.