By Dan Balz - Washington Post This is the kind of headline Democrats have come to expect from their opponents: "Middle class Voters Reject Democrats at the Ballot Box." But this time, the charge comes from inside the party, in a new report issued by the centrist group known as Third Way. The study represents a slap in the face at Democrats who pride themselves on being the party of working families and a challenge to party leaders as they prepare for next year's midterm lections and the 2008 presidential race. "Rather than being the party of the middle class, Democrats face a crisis with middle-income voters," the study argues. "The 45% of voters who make up the middle class -- those with household incomes between $30,000 and $75,000 -- delivered healthy victories to George Bush and House Republicans in 2004." The study is based on Third Way's analysis of 2004 exit polls. Among the five principal findings are that white middle-income voters supported President Bush by 22 percentage points. The study concluded that the "economic tipping point -- the income level above which white voters were more likely to vote Republican than Democrat -- was $23,700." Black voters supported the presidential candidacy of Sen. John F. Kerry (Mass.) and House Democrats by significant margins regardless of their income levels, but white middle-class voters tended to vote more like wealthy voters. "Democrats were not competitive at all among the white middle class," according to the study. The report also contained alarming news for Democrats about Hispanic voters. The more Hispanics move into the middle class, the less they vote Democratic. Based on the analysis of exit polls, Kerry's margin over Bush among Hispanics with household incomes below $30,000 was 21 percentage points, but among those with incomes between $30,000 and $75,000, it was 10 points. "Democrats talk and legislate a great deal about issues that they believe are of concern to the middle class, such as better schools, affordable health care and job security," the report concludes. "This has not translated into middle-class votes." |
The frivolous case for tort law change
Opponents of the legal system exaggerate its costs, ignore its benefits
by Lawrence Chimerine and Ross Eisenbrey
...This paper examines the major problems with [the] estimate of tort costs and challenges the assertions on the economic effects of the tort system ... and, in turn, [assertions] by the Council of Economic Advisers. It finds that CEA has presented no evidence that the tort system can properly be blamed for excessive liability insurance premiums, reduced wages or employment, lower corporate profits or productivity, reduced research and development, or a failure to introduce new products. Most important, it concludes that the tort law changes advocated by the president will not have any substantial positive effect on national employment, research and development, productivity, or job creation.
...
V. Conclusion
The economic case made by critics for changing the U.S. tort law system can only be called frivolous. They have claimed that there is a tort liability "crisis," when the facts show that the number of tort cases has declined steadily for years. They have grossly exaggerated the costs of the tort system, and have made unfounded claims about the tort system's impact on insurance premiums, corporate research and development funding, product innovation, productivity, wages and employment, and business profits. And they have claimed without any evidence whatsoever that changing the tort system will stimulate economic growth and produce jobs.
These economic claims have gone largely unchallenged despite the failure of the tort system's critics to substantiate them with credible evidence. With respect to job creation in particular, significant tort law change would be more likely to slow employment growth than to promote it. Endlessly repeating that so-called "tort reform" will create jobs does not make it true.
A one-sided focus on the costs of the tort system that excludes an examination of the potential effects of changes on the system's benefits is inherently dangerous. Professor Marc Galanter of the University of Wisconsin, a leading nonpartisan academic observer of the U.S. tort system, points out that changes to the U.S. tort liability system, even if undertaken for legitimate reasons, have the potential to reduce the rights of tort victims, leaving injured individuals, their families, and, ultimately, the taxpayers to cover losses that should be compensated by those who cause them. Galanter (1996) writes, "that it costs so much to effectuate [transfers of compensation from tortfeasor to victim] calls for remedy, but controlling these transaction costs should not be confounded with reducing the rights of claimants. Indeed, the potential exists to have the worst of both worlds by reducing the rights of the injured without significantly reducing the transaction costs of the system."
Economic Policy Institute -May 2005