Texas Lawsuit Reforms Boost State's Economy
The merits of lawsuit reforms have been thoroughly debated and now a new report by nationally recognized economist Ray Perryman offers supporters and defenders of reforms impressive measures of their impact.
Lawsuit reforms enacted in Texas beginning in 1995 have resulted in $112.5 billion in annual spending in the state, 499,000 new, permanent jobs and $2.6 billion increase in state tax revenue, Perryman's report said.
Additional benefits include a 21.3 percent reduction in medical liability insurance costs and 430,000 Texans with health insurance who would otherwise be uninsured, the report indicated.
Perryman also found the economic impact of lawsuit reform was widespread throughout the state. The Houston-Sugar Land-Baytown area showed a $39.1 billion annual spending impact, his study determined. A gain of 152,905 jobs was measured in rural Texas, where annual spending increased $4.01 billion and 19,950 new permanent jobs were created.
The report, "A Texas Turnaround: The Impact of Lawsuit Reform on Business Activity in the Lone Star State" was commissioned by the Texans for Lawsuit Reform Foundation, the research arm of Texans for Lawsuit Reform.
"Lawsuit reform has been good for Texas, bringing fairness and balance to our courts and boosting our economy, creating jobs, spurring business expansion and attracting thousands of new doctors to our state," said TRL Chairman Richard Weekley.
These benefits no doubt contributed to a Texas economy that has fared better than most other parts of the nation during the current slowdown which has seen a low growth rate over the latest measuring period as reported this week, but no recession.
Benefits from lawsuit reforms have provided Texas a competitive advantage in some challenging economic times. At least of equal importance is the greater degree of fairness and balance that has resulted in the courts process.
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