Lawsuits hurting economy, says Snow

US Treasury Secretary John Snow on Thursday toughened his criticism of excessive lawsuits, describing them as a tax on the economy, just days after Democrats tapped a trial lawyer to run for vice president in November's general election.
Speaking to the Portland Chamber of Commerce, Snow said "abusive" lawsuits cost US businesses as much as $200 billion a year and need to be reined in.
"That's a tort tax - paid in the form of lower wages, higher product prices and reduced investments - of $809 for every individual and more than $3,200 for a family of four," Snow said.
The US Treasury chief is on a two-day swing through Maine and New Hampshire and began the day with a series of radio interviews aimed at pushing so-called tort reform higher on the economic agenda.
He told a local radio interviewer that "frivolous, abusive" lawsuits had become so numerous that they were restraining economic performance. "It's become a drag on the American economy, hurts job creation and sends jobs off-shore."
Earlier this week, Democratic presidential hopeful Sen. John Kerry chose as his running mate North Carolina Sen. John Edwards, a millionaire trial lawyer who filed personal injury lawsuits before becoming a legislator.
In his remarks to the Chamber of Commerce, Snow said medical professionals and businessmen were "hostage to the threat of these suits" and that reform had to be introduced at both the federal and state level to limit them. "It is a tragedy that this country, made great by its 'can do' attitude, is becoming known for its 'can sue' attitude as well," he said.
Snow has regularly raised the issue of curbing lawsuits during his travels across the country this year, but the tone of his remarks on the issue was more pointed during the Maine tour, as was his bid to paint big settlements as a direct economic cost.
During interviews on radio earlier on Thursday, Snow said the US economy was in a broad-based recovery, which he claimed stemmed largely from President George W. Bush's decision to cut taxes early in his administration.
"I give a lot of credit to the Federal Reserve for good monetary policy, but without the tax cuts we wouldn't be seeing the GDP (gross domestic product) growth rates and job growth we are," he said.