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Economics

Prediction: Economic challenges will increase efforts by corporations to compel arbitration

Economics
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Prediction

Tariffs imposed by President Trump are expected to begin impacting consumers more directly, with economists predicting an uptick in inflation in the United States. 7.4 million Americans are currently unemployed (a rate of 4.3%) but job growth has slowed with only 22,000 new jobs reported in August 2025. The financial assistance that helps people afford health insurance under the Affordable Care Act is set to expire at the end of 2025 and was a key sticking point in the fraught budget debates that led to the shutdown of US government agencies in October. Without an agreement to extend these provisions, up to 17 million Americans could lose their health insurance. Meanwhile, corporations are expected to benefit from new tax breaks after the passage of the One Big Beautiful Bill Act (yes, that's its official name). We expect these developments will incite anti-corporate sentiment in the United States, which is one of the hallmarks of social inflation that contributes to the proliferation of nuclear and thermonuclear verdicts. Consequently, we predict companies will more frequently seek to avoid United States juries and compel arbitration wherever possible based upon the terms that accompany their products and services.

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