Saving with Steve, September 26, 2023
Saving With Steve with Steve Sexton
With Guest, Dr. Wayne Winegarden, On Tax Revenue
Episode 148: Reforming Our Legal System To Boost Tax Revenue
The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.
We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.
everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place Welcome To Die saving with Steve show hosted by Steve Sexton the show will help you with the ins-and-outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton all over buddy welcome to the saving with steam show where we talked about the ins-and-outs of money pretty much everything in there so early she you having a happier healthy relationship with money I want to thank you for joining us today I want to thank you for sharing with your friends and family who got one heck of a show today today it's all about the legal system<br> according to Pacific Research Institute Americans pay at or tax about $1,300 per person thanks to lawsuit abuse and reforming the legal system could boost the US economy by 2% over time finds a new study released by The california-based nonpartisan free-market think-tank the Pacific Research Institute we have doctor wingler and arteries here with us today he's got a tremendous amount of experience with Fortune 500 companies medium size small businesses trade associations were lucky to have him he's going to go through the all the ins and outs with that but first we're going to be talking about the signs of a recession it's important to understand like you and I understand what's really going on with inflation last month of inflation report and you heard this in the headlights and the headline said inflation is going down and sound at 3.3% and you just saw the top line numbers the big thing here is it when you take a look at inflation<br> you realize if you take a look at the report and you just go to the last inflation for you'll see that energy oil gas natural gas are all down between 16 and 36% that is the reason why inflation is down in the last month<br> what you doing now or maybe didn't see in the top line numbers is a fact that mr. buying their president release 250 million barrels of oil months back to reduce that portion of inflation okay problem is is kind of run out and on top of that we have opequon Russia reducing oil production by 2.5 million barrels a day and just last week another million barrels a day so we've got oil production reduced by 3.5 million barrels a day and now that you know that you're realizing hate that's the reason why gas is up $68 20 or even more than that depending on where you live her gal question I want to ask you now that you understand what's going on is what do you think it's like she's going to go many condom is expected to go up and they said the FED to Rack she raised interest rates problem is how far can they raised it before we have problems too. Remember 60% of our economy is based out of small businesses<br> bankruptcies with small businesses have doubled from last year and we're only halfway through the year s lady small businesses they go from being charged for maybe 5% and Taxation I mean for 5% interest but now they're paying 12 and 13 and makes it so much harder to do business and if they're on a justable rate interest rate is squeezing them what do you think's going to happen with small businesses and it's also turn yourself over to what's really going on with the Loan program where you see the office buildings are coming into play and their mortgages are coming up and they don't have enough people in there and you seen big buildings already being returned back to the bank's many of our regional banks are there many of those Regional banks have those what was if you saw Kevin O'Leary from the Shark Tank he saying hey there's a hundred billion dollars from Banks we're lasting months are you starting to see all these little economically bubbles lineup and they're getting bigger and bigger and what happens with<br> neighbors don't they<br> it's really important that we understand what's going on in town if you're not on the top line which is he in the news but what's really going on in the surface is this is the time where you start saying hey you know what I might want to make sure my debts are paid off or paid down so I have less credit card debt because that's going up to and it might be a good idea to stock money make sure I have at least six months<br> add expense money sitting inside in case I lose my job because it indicates keep going up which they probably will it's likely you're going to be in a position where there's going to be job losses cuz that's one of the thing the judge wants to see in order to get the inflation under control really take a look at it I want to thank you for joining us like I said I'm going to bring Wayne Weingarten and we're looking forward to chatting with in about every form so with that stick with this movie right now more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where to be talking about the in an ounce of money does Financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve sex and out of saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton which TV show where we talked about the ins-and-outs of money today again we have doctor Wayne Winegard and you can be talking about reforming the tort system and there's an interesting piece on your website when I first of all thank you for joining us today there's an interesting statement on the website it says Americans pay at or tax it's $1,300 per person thinks the lawsuit abuse and reforming the legal system could boost the US economy by 2% over time and this is based off the study one of the things that I saw that was interesting is it's a boom for lawyers but not so much their clients and that's kind of the message that I saw so help people understand what's going on with the legal tort system out really benefits the attorneys so let's just start right there cuz you won't understand what's going on with this and my understanding is there's a policy<br> Bankers are involved with this where the Contracting out to lawyer to do certain things in the lawyers are doing very very well from it and so on and so forth has a long-standing problem we talk about tort reform you can go back 30 years when I first got my Ph.D it will talk much or perform then and it's only gotten progressively worse and part of the reason we picked up on this at this time was because as his problem has grown it becomes a bigger and bigger Paul on the economy taking away opportunities and in particular take away opportunities from small businesses so from what kind of a saving building a nest egg me small businesses are supposed to be a way that families can do that and so we really wanted to highlight this idea that unless we bring this tort system under control that pathway to the middle class is being shut down to me even worse is being shut down under the kind of think the concept that were helping the consumer<br> play any up with kind of a very Auntie Can a family policy which is being justified by that will help in the little guy so then that was part of our interest in trying to look into this and the other empty places that you now seen the ambulance Chasers going to use that word take over the AG's office and you seen that some of the cases are could be well-founded to look at the opiate abuse cases could be a real issue there I'm not a lawyer don't pretend talk about the merits of that case but when you have private lawyer being hired by state Ag and getting paid on basically how well they do right so they're going to get a piece of the action as it were but I should have based on a contingency fee was that is a very distorted process because now you are Outsourcing the public defender position to private attorneys and those private attorney don't have the same incentives that the public<br> the publication of the top law enforcement of each state their job is to protect the public interest which include businesses right there private attorneys they're only incentive is to get as much money as possible and you seen several cases Oklahoma other areas with the actual State AG has been dissatisfied with the exact reason that the private attorneys are using this as a way of investment banking and looking for the best financial return this is where all the reasons we wanted to look at this even though it's an old issue it's really ramping up and is really becoming a problem for individuals for big businesses across the board and we wanted to highlight some of the cases where you seen some of these issues and the damage is being done and just brought this when you said small business is one of my plans they lived at the Arizona border in basically an attorney came by and said that they didn't have the right<br> door or something like that even though they had a ramp out front and basically ended up suing them and they said they settle for $10,000 and moved on the reality is that actually help the disabled person tell a person be able to get in there and I guess they didn't have one brace that was supposed to be in the bathroom and something wasn't three inches longer that type of thing and was one of those things where they said the attorney told him you better up settling cuz it's going to cost you three times that much if you go to court documents several of those cases in the study and that's to me we have a small business has won the most troubling aspect call drive-by can a Casey's work sometimes you just have it the lawyer from a different state we document in Texas with lawyers from Florida you said she just drove by looking at the parking lot do this patient look too small is the sinese correct Americans with Disability Act is incredibly important when is real violations that's an issue but when you have a drive-by with no one to actually trying to ask<br> I don't want to not gaining access to it but it's a technical violation the business isn't even given the chance to correct the technical violation that was one of the things we found that I thought is particularly disturbing often people aren't even showing me these are very detailed law that if your small business you don't know all of the details of the Americans with Disabilities Act do so many things is a small business owner you need to worry about the details of how big the parking spaces supposed to be for handicapped is just too much to do you know so you're not given the opportunity to fix it which could be a couple hundred bucks just to Interchange that you know what the sign into whatever the case maybe you had business and $10,000 is right around what we found that that's that's kind of like the standard atoll a Shakedown that you you paid the lawyer<br> them to go away and you pay it because you can spend $10,000 to make him go away where you can fight it and spend $50,000 and even if you win you still at $50,000 it's it's it's a no-win situation and it's a situation where again it is a violation she may actually lose but there was no malice it was something you weren't aware of anyone ever given a chance to to rectify it to is completely unfair and when we documentation to study as well will you see these businesses mean if your small business you have to hand over $10,000 the one we talk when they were lucky enough to get through it but that could be a ruinous me $10,000 I paid up front you may not be able to get those put in the back to keep on as if I'm going concern I can see that because if most of all businesses especially in more ruler is might be making $34,000 a year and that could be 25% or more of the annual revenue<br> they have going to be completely devastating you a lot of people want to understand when you get a bigger business. Obviously they're bigger Target cuz they have more money so what type of legal suits are being perpetrated are the lines of business is a lot of it has to do with either the shareholders and talking about investment and so are their violations on mergers and Acquisitions things of that nature and one things that we found was surprising is bad you talking about a vast majority of these mergers and Acquisitions and other deals are being raised there, toward abuse or some sort of you talking about some sort of violation of Securities Law is raised I'm not just increases the cost of one of these deals and one of the strengths of the US economy<br> these are deep a Natural Market Street Health of large businesses because they can capitalize because when you have a more vibrant corporate sector off and they were going to be sourcing things small businesses certain things to other businesses so that helps create a vibrant broader economy and that depends on the market now when you adding these legal costs when you dealing with these very complex mergers Acquisitions things of that nature when you now have okay we have to deal with the litigation for it so now we have to evaluate not only have the deal you does that make sense now we have to pay for that but now we have to set aside additional money to deal with both the time that the litigation is going to impose as well as the class that litigation and of course the rest what if what if we're unsuccessful those added costs are going to change your behavior right when you increase the cost of doing the deal you're going to get you were deal just like<br> increase the cost of Apple's people will buy to your app same basic logic soak in these large and business they're being impacted because they have to deal with this cost as well know they're usually better able to manage them small business right very large corporations they have legal department to have a chief counsel to they're in a better position to manage it but make no mistake it's a real cost and again it's a car with no offsetting benefit far too many of these dudes are inappropriate is no real and a violation that's going it's just a way to get a Shakedown it's a hard to shake down from the lawyer's perspective with the big of a on everybody now we understand what's really going on with some resolutions and what Wayne and his group proposing more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where to be talking about the in an ounce of money does Financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve sex and out of saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton hello welcome back to the saving Willis TV show where we talked about the ins-and-outs of money pretty much everything in the centrally to you having a happier healthy relationship with money I want to thank you for joining us you can go into our shaving with Steve Sexton on her Facebook page get guest gifts behind the scenes stop recording the whole shot we're going to step right back and he was laying Weingarten we've been talking about what the issue is with lawyers and the frivolous lawsuits and all the thing is going on with that now we're going to talk about what can be done what their study shows how can help the economy and reduce inflation so with that I want to welcome wing wing Garden back Wayne welcome back to the show so help us understand I know you've done your study how could making changes to the law or tort law<br> how to grow the refinery reduce inflation and actually boost tax revenue to the most important thing to remember when we were talking about these issues is that what was the economy when the economy grows when we are either a more productive so that we can produce more things with the same amounts of going to resources and if we have more people than we can produce more as well but that idea of being able to produce more per person is that key essential to how as a nation we can continue to be more prosperous into the problem with the Tour de Beaute problem is that it makes it more difficult for people to produce is he in mad about you didn't mention our productivity and you're taking resources away from those who kind of using it as well and was spending them on kind of value-added stock instead of a small business trying to come up with the new technology he's been his resources defending against the lawyer same thing as small business<br> serve the community whether it's your restaurant where the case maybe you had that has a lot of value you providing people with valuable Services they're not spending the time on that that is what kind of diminishes its growth and when you talk about that writ large when you look at our growth now which is lower than it used to be going out around 2 / 7 to call that good growth you know when I was younger it was 3% and there's no reason we can't get back there despite with some negative connotation for people with Shay. We need to get these types of productivity detracting policies remove that's going to look at litigators in the command prompt ORD abuse there's a key thing right we want to keep balance me to make people need to have access to the court system to get restitution been having to do medications when arms have been put against him acting responsibly that access is essential we need to preserve that access but at the same time<br> raising the cost on litigators what kind of kind of use the system and lowering the cost for businesses defend themselves right now when you look at the way our system is set up the balance is off so that the reward from engaging this activity is very very high the cost and engaging it is very very low in the cost of Defending yourself against these actions are very very hot when you kind of all those incentives together you end up with a problem that we have and so and he's come Solutions have been around for a long time but what we need to do going to be in that broad sense is change that balance we need to make it cheaper or less risky for businesses defend themselves and we may need to make it more costly or riskier for the lawyers were trying to beat the system<br> I'm getting activity so he look at some of the things we talked about one of the first things that were particular concern is his idea of Outsourcing the Attorney General's job certainly Outsourcing when you have a contingency fee Arrangement so that if you're an attorney general let's say that you're concerned about the opioid crisis and you think there's a legitimate reason why you need to sue litigate the issue and you can hate that you don't have the Manpower which she uses the excuse you don't have the Manpower Outsourcing that to avoid that perhaps it makes sense but putting them on a contingency fee Arrangement does not do your lore is that it cost you nothing for the AG right but the problem is you set up the jackpot just for the lawyer so if you would be if you need expanded out that needs to be on a basic paper our type of the arrangement that's consistent with any other contractor if you can Outsource the construction of Road<br> payment based on how many people are using the road is not that type of reward structure built in that kind of natural limit on how much private litigator can get needs to be in there you can't have the power of the Attorney General's office a means for jackpot Justice for lawyers that needs to be addressed or speaking we need to tap how much a lawyer can make when you have these lawyers in his class actions making billions of dollars they are no longer an officer of the Court could become an interested party in the transaction and that's wrong if it that's all the incentive that needs to be either capped to some level in some way and the use of contingency if he needs to be constrained said we don't have lawyers becoming parties to a lawsuit in the UK Prince is right there are officers of the court to is no contingency fee because as an officer of the Court<br> you get paid for your services but you're an officer of the Court we need to bring that kind of tapping for the private doors outside of when they're working for the AG's office and then we need to actually help businesses in some way where is a penalty for lawyers who bring clearly frivolous and that's a vague concept we need to Define it specifically like when you have completely frivolous lawsuit it needs to be a cost on the lawyer in terms of a fine penalty for breaking those types of cases so that they have a higher cost of higher risk when they're going out in the trying to do these types of dried by cases where you just drive by the Small Business review the parking lot in trying to see if you can shake down the business for some money that's clearly proved that they need to be a penalty for the lawyers when when you go to court and you have this type of circumstances and you also need the businesses when you're facing and prove his case to be able to have their cost<br> true that we talked about earlier your client or cover the $10,000 cuz he didn't want to spend 50 Grand defending themselves perhaps if they felt like they had a strong case and they knew they can get that through to Grandma had a chance of getting the food to Grand reimbursed the economics judgment is going to change in terms of that calculation should I defend myself well people can ask them to the question I think this is clearly frivolous let's go find ourselves and then when we win we'll get our money back so is those types of arrangement are going to change that bad today it cost businesses less what are less risk for defending themselves there's more risk on the attorneys when they're bringing frivolous cases and when is legitimate claim absolutely they need to have the ability to bring those but we need to reduce the incentive for bringing these frivolous claims and finally cap how much they get rights attorneys<br> a billion dollars from class action suits and there's precedent for that that is unacceptable and that creates this incentive to have that tour tax and that's when we look at when you look at how much it cost the economic analyses have shown you talk about 44 billion dollars a year about 2% of our economy is wasted on this frivolous type of litigation and if we remove that we're not only getting the benefit of not having that 44 billion dollars but we now also expanding the returns from engaging in entrepreneurship and that added incentive to watch with no ship that's going to accelerate growth beyond the 2% that we talked about that's not something that I don't think it's going to fire will certainly have something we tried to quantify but having a greater incentive for entrepreneurship that's what we're missing that's what we need to keep changing kind of our laws or regulations to enhance entrepreneur<br> skip to reward that this is an important step in doing that and that will pay off by increasing our productivity increasing our ability to grow and that's really the keys kind of address so many of the problems we're facing this country now here's the big question and it just the last message before I go we know there's a lot of lawyers in the political system on a self-serving side on them this would be hard legislation to get through if you're looking to reform the whole system is their legs to it is it taking hold things his legs to it and then this is a little bit of shouting into the wind at this point one of the reasons you wanted to do this is to remind people these problems out there get conversation about it to get people talking about it to get small businesses large businesses the more that people talk about it the more that we recognize this problem is there I think that's the first step but undoubtedly it is a reason why this problem has festered for decades and it's because you like what you just said that the<br> interest groups as well as the politicians they all look at the positive side for litigation and undoubtedly there is a positive side isn't for the court system especially when you punish bad actors in reward people for the damages if they've suffered but what they do is they take that valuable part and then they kind of emphasized that was ignoring all of these cost and what we're really hoping to say is look obviously we need that nobody saying that needs to be taken away but we need to focus on these cars because that's hurting way more people year in year out compared to what what's going on here and just the movie have it conversation what we talked about it hopefully that will overtime build up the movement but no I wouldn't expect that is any type of really good legislation happening in the next couple years unfortunately you just heard wing wang Garden I think it'd be wonderful we start spreading the word and you start talking about it because you really think about what's going on here<br> it could save you money it could save the business money it could prevent a business or friend of yours from going out of business because of the stuff and it makes sense if you want to read more about this go to Pacific research.org you can look for the report there it's right there you'll see I can wing winegardner and Cheri Jackson the co-authors of this may be a worthwhile read share it with your politicians see if you get some black on this issue because I think you'd be a great thing not have to worry about getting sued over something you didn't know about or didn't think to know about not just because you were somebody says there's no excuse for not knowing I mean it's not a traffic ticket you weren't speeding it's something that's the difference between three or four in sometimes on a stall or a parking spot at somebody suing somebody for that could destroy a business so when I want to thank you for joining us today I have this right it's the Pacific research.org or people can go to I would love for your organization to keep in contact with ours because if something does occur within<br> do you need some extra help we'd love to help you cuz there's a lot of people didn't hurt from frivolous lawsuits hope to not have that happen too much in the future that I want to thank you for joining us I hope you have a wonderful week way and maybe we can have you back next time okay thank you we will look forward to seeing you next week it's more shaving with Steve and until then you have a safe and happy wonderful week bye bye thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>