While he number of newly graduated nurses has increased significantly over the last decade, laying the blame on the nursing schools for the present nurse oversupply is misplaced. The institutions are responding to the demand for nursing education and while some schools - primarily, but not exclusively the for-profit colleges - have aggressively and perhaps deceptively recruited new nursing students, in most cases, the demand is consumer-driven due to the the media (and to a lesser extent, the BLS).
There have been countless stories in print and in the electronic media that spoke about a severe nursing shortage and framed the nursing profession as as immune to recession. The verbiage about nursing in the BLS information was only slightly less hyperbolic. As a result, greater and greater numbers of students migrated to nursing programs
and colleges increased their nursing enrollment in response to this increased demand.
The AMA strictly limits the number of students that can attend medical school in this country through a variety of mechanisms. This artificially limits the number of doctors thus actively encouraging a permanent physician shortage. Unless the ANA is willing to do something similar, nursing employment will always be cyclical, with shortages followed by gluts followed by shortages, etc, etc.
Right now, we are in the glut part of the nursing employment cycle. This will be followed by a shortage, but at some point in the medium to long term - probably too far in the future to help many of the tens of thousands of likely underemployed nursing grads over the next several years.