A new study of lawyer licensing in the USA concludes that regulation serves the profession’s financial interests rather than the public’s interest in protection from incompetent or unethical lawyers. In “What is the Objective of Professional Licensing? Evidence from the US Market for Lawyers” (Nov 2004), Turin Univ. Prof. Mario Pagliero finds that the objective of such regulation in the USA is explained by capture theory, and “licensing increases annual entry salaries by more than $20,000.”
Pagliero notes “This implies a total transfer from consumers to lawyers of 36% of lawyers’ wages and a total welfare loss of over $6 billion.” The abstract is available from SSRN, and the entire 36-page study can be obtained with a free registration.
- According to the study, of the 25 states covered, the “transfer” per lawyer from consumers was more than $40,000 per year in Mass., NY and NJ, and under $10,000 only in Iowa. (chart at p. 32)
the thief
is just as he is…
hazy moon
……………………………………. by ISSA, translated by D.G. Lanoue
one-breath pundit
On a not-unrelated topic: As he does so often, Matt Homann at the [non]billable hour, is once again dreaming up ways for lawyers to extract more money from clients without giving them a better product. (and LegalBlogWatch is encouraging him!) Once again, I wonder how the fiduciary relationship jibes with manipulating client psyches and price elasticities in order to maximize profits. See our posts on value billing, lawyer marketing, and fees and the lawyer-fiduciary.
to see its December edition. I hope “chief judge” Christopher Herold won’t
hold me in contempt.
Among the dozens of fine haiku, two by f/k/a Honored Guests
were selected as this month’s Editor’s Choices:
crackling beach fire –
we hum in place of words
we can’t recall
Flooded plain –
fence tops show which water
belongs to whom
Click here to see this month’s winner of the Heron’s Nest Award, a fine haiku by
a great tip for haiku poets (and worked for dagosan this morning):
“When a haiku poet is devoid of inspiration, he or she needs only to
look to the sky. Whether the moon waxes or wanes, shooting stars
silently arc above us, or clouds render the heavens a featureless
expanse of utter nothingness, it is often our only consistent Muse.
Winter stars are all the more poignant in their contrast with the dark
sky, a contrast that heightens with each sleepless hour.”
snow falls
from a low gray sky -
she lifts the sauce pan lid
[Dec. 3, 2004]
If you haven’t seen the United Church of Christ 30-second ad that was refused
by some major networks as too controversial, please go here. (via Jim Moore).
UCC describes the ad:
The UCC’s first 30-second television advertisement – part of the
denomination’s new, broad identity campaign – began airing nationwide
on Dec. 1, stating that – like Jesus – the United Church of Christ seeks
to welcome all people, regardless of ability, age, race, economic circumstances
or sexual orientation.
Information Empowers Consumers: This is great! On Dec. 9:
“On Dec. 9, Consumers Union, the nonprofit publisher of Consumer Reports,
education project that will help you find prescription drugs that fit your budget—
especially if you are a senior or have no prescription drug coverage. Visitors to
the Consumer Reports Best Buy Drugs website will be able to view the latest findings
about the comparative effectiveness and cost-effectiveness of many widely used
prescription drugs. We will tell you what you need to know when you talk to your
doctor about switching to more cost-effective medications.” (via Sabrina)
Maybe folks who have been spending $200 a month for a “miracle” pain reliever will decide
that $2 a month aspirin or ibuprofen is a far better value.
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