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June 13, 2006

Manufacturers: Why We Care

So why do manufacturers care about legal reform? Well, first of all, we spend over 2% of our gross domestic product on tort costs. That's seven and a half times more (in dollars) than the silver medal winner (loser?), Germany. To put it in context...

....the amount of money we flush down the rat hole on tort costs is larger than the entire Gross Domestic Product of any of the approximately 200 countries on this list. How discouraging. That's money that's not going into capital investment. It's money that's being sucked out of the system. In its place goes zero value.

Second, we lead the way in innovation. If you've seen it or used it and it's cool, we invented it. We get the bulk of the patents. Still, the biggest virus facing innovation and risk is litigation.

We spend far too much time as defendants in frivolous lawsuits, precious time that's being taken away form inn ovation and production. It's why we are at the forefront of legal reform in every shape and size.

Posted by Pat Cleary at 07:29 AM | TrackBack (0)




Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.