The Cost Of Doing Business
Lawsuits cost the US $136 billion a year, driving up prices for consumers and businesses alike.
The World Bank, along with the International Finance Corporation, set out to discover which nations were most business friendly. After considering an array of complex factors like corporate income and payroll taxes, local entrepreneurial laws, and government intervention, the report concluded that Singapore-for the second year in a row-was the best place in the world to do business, followed by New Zealand. The United States landed in third place.
One reason for America's third place finish is the unofficial "litigation tax" many companies face. Lawsuits cost the US $136 billion a year, driving up prices for consumers and businesses alike. According to an article in the Rutgers Law Review, there has been a steady 12% annual increase in spending for legal services in the United States. To combat frivolous lawsuits, companies such as Home Depot (HD) and Trump Entertainment Resorts (TRMP) provide warning labels for everything from avoiding spinning airplane propellers to blow-drying hair while sleeping.
But there's one place that causes over 40,000 accidents a year-join Hoofy and Boo as they warn against an all too common slip up for American business.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter