Business Factoids!

Why are dental visits in America before less frequent?

A British health minister once claimed that the demand for health care is infinite because everyone is in a losing battle against death. This is not so for American dentistry, however. As aggregate U.S. income levels have risen during the last 25 years, overall spending on dental care services has declined.

It is not that fewer Americans are seeing dentists each year. They just do not require as many fillings or extractions. As incomes rose, people purchased more expensive and effective toothpastes. More towns, cities, and counties began to fluoridate their water as the relative price of this anticavity agent declined, so changing relative prices have played a role. The higher incomes of their residents have permitted more municipalities to purchase fluoridation systems. At every age, the average American now has two more teeth than 25 years ago.

Many fledgling dentists have begun specializing in "cosmetic dentistry" desired by clients with healthy but less than beautiful teeth. Cosmetic dentistry is more likely to be a normal good. As incomes rise, people are likely to wish to improve their appearance because they can afford the expense.

To drive in the streets of London, drivers were initially charged an $8 fee, which has since increased to $14, every time they enter London’s central business district. Before the congestion fee was implemented, traffic congestion was a major problem in central London. The effect of the congestion fee was to reduce traffic congestion by nearly a third in three years, as measured by traffic speeds.

Since then, traffic speed has nearly doubled from about 5 mph during business and rush hours to about 10 mph as a result of a decrease in the number of motor vehicles entering central London. In addition, use of public transportation into the area increased significantly after the fee went into effect.