I don’t know if tort reform makes a big difference or not to job creation, but Richard Fisher tells the Wall Street Journal editorial page that it might:
Based on his conversations with CEOs and other business leaders, Mr. Fisher says one of Texas’s huge competitive advantages is its ongoing reform of the tort system, which has driven litigation costs to record lows. He also cited a rule in place since 1998 in the backwash of the S&L debacle that limits mortgage borrowing to 80% of the appraised value of a home. Like a minimum down payment, this reduces overleveraging and means Texas wasn’t hurt as badly by the housing crash as other states.
The tort reform claim makes intuitive sense to me, though I’d want to see more data. I’m pleased to see that Fisher, like many conservatives, is a fan of high minimum down payments.