Alleviating the long-term burdens created by tort abuse should be a top priority regardless of the economic outlook. Considering our current economic struggles, however, the benefits from effective tort reform are more important than ever.
The inflationary surge that began in mid-2021, even if it is ending, has left far too many families worse off financially. Adding to the stress, mixed economic signals raise the risk of continued weakness. And should we avoid a potential recession, there is still little evidence that robust economic growth will resume anytime soon. Consequently, it will take too much time for people to recover from the economic damage wrought by the last two years.
Effective tort reform can help. Studies have consistently found that frivolous litigation reduces economic opportunities, jobs, and government revenues while increasing costs for all Americans. A 2021 study from the Perryman Group estimates that the full costs to the U.S. economy from tort abuse are 4.24 million lost jobs, $429.35 billion in lost output annually, and lost government revenues (federal, state, and local) of more than $110 billion annually. On a per-person basis, this is a “tort tax” of $1,303.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
Tort Reform Offers A Win-Win Stimulus For The Economy
Wayne Winegarden
Alleviating the long-term burdens created by tort abuse should be a top priority regardless of the economic outlook. Considering our current economic struggles, however, the benefits from effective tort reform are more important than ever.
The inflationary surge that began in mid-2021, even if it is ending, has left far too many families worse off financially. Adding to the stress, mixed economic signals raise the risk of continued weakness. And should we avoid a potential recession, there is still little evidence that robust economic growth will resume anytime soon. Consequently, it will take too much time for people to recover from the economic damage wrought by the last two years.
Effective tort reform can help. Studies have consistently found that frivolous litigation reduces economic opportunities, jobs, and government revenues while increasing costs for all Americans. A 2021 study from the Perryman Group estimates that the full costs to the U.S. economy from tort abuse are 4.24 million lost jobs, $429.35 billion in lost output annually, and lost government revenues (federal, state, and local) of more than $110 billion annually. On a per-person basis, this is a “tort tax” of $1,303.
Click to read the full article in Forbes.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.