With the increase in premiums dollars, there will be an increase in funds for such investment which otherwise might result in a less desirable allocation of funds. With the increased funds available for expansion of the economy, there will be an additional increase in employment and tax revenues. At the present time the injured persons are not being indemnified for their losses. This results in those individuals relying on the social programs, depleting their savings, or imposing on their friends and relatives for assistance. This is not the most efficient manner in which to meet the needs of the people.
Private industry can probably provide for the needs of the people better than the government.
If the needs are met by private industry, there should be a reduction in the size of the social programs. This should result in a decrease in the demands placed on the taxpayer. The cost of insurance would increase with the increase in litigation. This would affect both the commercial and personal buyer of insurance. The commercial buyer of insurance would see the cost of doing business increase, this would result in an increase in the price of the product being manufactured or sold.