Katherine K. Yunker, Addressing the Real Problems for Law and Economics of Factoring Interest Rates, Earnings Growth and Inflation into Awards for Lost Future Earnings, 56 U. Pitt. L. Rev. 1 (1994)
The difficulties with lost-earnings awards (whether for an individual or an enterprise) stem from dependence on predictions of the economic future. The article proposes a method to eliminate the need to predict the earning power of a lump sum of money awarded today to compensate for damages which will occur in the future. This would be accomplished by employing a form of debt obligation, issued and backed by the U.S. Treasury and available for purchase on the open market, that assures payment of a certain sum of money on a specified date in the future. Stating a lost earnings award in terms of these debt obligations would avoid prediction and its attendant costs and preserve finality of judgment.