Peter St. Onge, Ph.D., an economist and senior fellow at the Heritage Foundation, said that the U.S. tort system places a burden on families and bankrupts small businesses. He argued for immediate tort reform as policymakers prepare for the 2025 sessions. This statement was made on X.
"Tort costs the average American family $5,215 per year," said St Onge, Ph.D., Economist. "they bankrupt thousands of small businesses. It's fueled by left-wing judges who use courtrooms to redistribute wealth and punish people they don't like. Abusive lawsuits prey on small businesses, crush free speech, and add thousands to health insurance, car insurance, and home insurance."
The U.S. Chamber’s Institute for Legal Reform's 2024 tort-cost study is influencing the current civil-justice debate. The study outlines an environment of expanding liability exposure and increasing litigation pressures, often referred to as "social inflation," which affects consumers and small businesses. Lawmakers and business groups are using this report to craft proposals aimed at restoring predictability, lowering costs, and improving competitiveness.
According to economists at The Perryman Group, excess tort costs create a "tort tax" of $1,666 per person and approximately $5,215 per family. These costs have dynamic effects including $557.8 billion in reduced output and 4.8 million fewer jobs. The report indicates that targeted reforms correlate with improved judicial efficiency and stronger economic performance, suggesting significant economy-wide gains from reducing excess litigation.
The Swiss Re Institute reports that litigation costs have become the primary driver of U.S. liability claims, which have increased by 57% over the past decade, surpassing traditional cost drivers such as wages and medical inflation. Swiss Re warns there is "no sign of social inflation abating," meaning liability and defense costs are increasingly passed through to consumers, strengthening the economic argument for reform.
St Onge is a former Visiting Fellow in Economic Policy at The Heritage Foundation, a Washington D.C.-based research institute founded in 1973. At Heritage, he focuses on growth, regulation, inflation, and fiscal policy—producing research, media commentary, and policy briefs aimed at informing lawmakers and the public. His work supports Heritage’s mission to advance free-market solutions in national and state debates.
