Bush says limitless lawsuits hurt U.S.

Published 9:00 pm Wednesday, December 15, 2004

WASHINGTON – President Bush said Wednesday that American companies are suffering a competitive disadvantage around the world because of the high cost of lawsuits and legal insurance in the United States.

“The costs of frivolous lawsuits in some cases make it prohibitively expensive for a small business to stay in business or for a doctor to practice medicine, in which case it means the health care costs of a job provider or job creator are escalating,” Bush said.

Bush spoke at a two-day White House economic conference, repeating his plea for Congress to impose caps on legal awards.

“Justice ought to be fair,” he said. “Those who have been hurt ought to have their day in court. But a judicial system run amok is one that makes it really hard for small businesses to stay in business.”

Vice President Dick Cheney opened the conference, saying it was critical to make Bush’s tax cuts permanent during his second term while achieving broader reforms in the tax code and bolstering Social Security.

Treasury Secretary John Snow, who will stay on as Bush’s chief economic spokesman, told the conference that the administration was determined to enact an overhaul of the tax system in the coming term, calling the current system too complex.

Harvard economics professor Martin Feldstein, participating in a panel on economic conditions, said he believes the country has emerged from the 2001 recession and the prolonged period of weak job growth.

“I’m pleased to say the economy is now in very good shape,” said Feldstein, who is a candidate to replace Alan Greenspan as chairman of the Federal Reserve Board. “National income is growing, growing at an above-trend pace, employment is rising, inflation is low. So by all of the key measures, we’re in good shape.”