Steven Kopits of Douglas-Westwood has taken it upon himself to list Do’s & Don’ts emerging from an analysis of the Gulf of Mexico oil leak and its aftermath. And what starts off as perfectly reasonable, well thought out advice ends with a ridiculous assertion worthy only of an oil industry insider desperate to protect his company’s interests.
The last in the list of do’s and don’ts in this post (via Econbrowser’s James Hamilton) is “Don’t permit unlimited liability”. And apart from the usual threat of how this would spell disaster for the US economy as offshore oil companies will just up and leave for friendlier jurisdictions, is this gem
“Liability needs to consider not only the damage inflicted, but also the ability of a given company to pay”
There is nothing more to say.