May 19, 2005
From the Economic Policy Institute:
The Frivolous Case for Tort Law Change
Opponents of the legal system exaggerate its costs, ignore its benefits
by Lawrence Chimerine and Ross Eisenbrey
"Tort litigation has been blamed for driving liability insurance premiums to excessive levels, reducing real wages and overall employment, undermining corporate profits, dampening productivity growth, discouraging research and development, and generally reducing the willingness of corporations and individuals to take reasonable risks (such as introducing new products) that may benefit themselves and society. There is scant evidence for any of these claims. To the contrary, macroeconomic trends since the early 1990s are especially inconsistent with the argument that supposedly high and rapidly rising tort costs have inflicted serious harm on the economy. Yet the legal system's critics continue to argue that there is a tort liability "crisis" that warrants changing the tort system, and that change is a key element in bolstering economic growth in the future. Yet these critics provide no credible evidence to support their assertions. In fact, what little effect changing the tort system will have on the economy might hurt job creation rather than help it."
Read more about it.
Ron Jones, Unv Cin Law Lib
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