Cliff,
Got news for ya...the doctor supply in US has little to do with the number of US graduates. There are ample (a nearly unlimited supply) of foreign medical grads coming to our shores.
You are right about medical schools limiting the number of US grads...there are numerous applicants for every seat in every class of every medical school. As the pay decreases, which it is, you can expect those seats to be filled with students who otherwise would have gone into...say, underwater basketweaving. The sharpest applicants will go elsewhere, where their brainpower and work-ethic will be rewarded more handsomely. Lets face it, anyone with even half a brain will not go into massive debt, study like crazy and take little or no pay for the first 10 years of their carreer (and I'm talking AFTER collage) to make $100-150K/year. You'd have to be a fool to accept that ROI. And, of course, a fool for a physician is exactly what you'd get.
As you might have guessed, medicine is a complicated business, often quite stressful (what with the constant risk of maiming and killing of patients....and the lawsuits that come regardless), and one that requires a high degree of critical thinking and judgement to be any good at. I'd prefer that there be at least some selectivity in the selection process. But, that's just me.
Regardless, unless you've checked lately, you'd be surprised at what physicians make. There are great regional differences, but many/most primary care docs make $100-125K, with specialists making more depending on the specialty (of course that comes at increased expense, and an even longer period of not making enough to pay down your loans, buy a house, start a 401K etc). Very few specialists in my area (including surgeons) make $500K. I don't even come close in the best of times.
As they say, you get what you pay for. Although, I think Obama is trying to convince everyone that you can also get what you don't pay for. Good luck with that.
Here's what's broken with US healthcare: medical schools aren't graduating enough docs. The med schools artificially restrict the number of new docs coming into the system for the sole purpose of maintaining and inflating salaries. They say it's to "maintain the highest standards" and such but that's just bs. GP docs should be $100K/year, not $250K/year. Specialist docs should be $150K/year, not $500K. Increasing the number of graduates doesn't mean that standards have to come down....perhaps quite the reverse in fact.
Of course, no politician (or anyone of any importance in the debate for that matter) has the backbone to say that publicly.
Dramatically increase the number of new docs being graduated would cut costs in an equally dramatic fashion. Docs in national health system in the UK, for example, are paid substantially less than here in the US. And, no, liability coverage for docs in the US is not the difference - not even close.
I suspect the above is offensive to a doc or two on this site - no offense intended.