Middle Class

empty-pocketAt the risk of stating the obvious to this audience, the American middle class is in serious trouble. But why am I taking the time to state the obvious? Because it isn’t what we know, it’s what we do with what we know to reposition our solo/small firm practices for survival that matters most. Most solo/small firms are consumer-law driven. Since so much of the success of many a lawyer has been predicated on a stable middle class with disposable income, how a solo/small firm responds to their disappearing wealth is intimately tied to their professional success.

The middle-class share of national income has fallen and continues to fall, dropping many who were normally categorized as such into the lower middle class, even upper lower class. Middle-class wages are stagnant even though productivity time has increased dramatically, and we no longer have the world’s wealthiest middle class. I don’t even have to quote any sources on this information because you just have to Google it and you’ll get hundreds if not thousands of pages and articles on this alarming topic.

As painful as this squeeze is individually, multiply this by millions of families (your potential clients). Then aggregate this demand across all areas of the economy (obviously, the law), and you see why this will inevitably trickle down to cripple the following generations (also your potential clients).

But the story is much bigger than this and has another very important side….

double red triangle arrows Continue reading “Squeezing The Middle Class For Legal Fees Is Like Trying to Get Blood From A Turnip (Part 1)”

* USDA requiring a magician to develop a disaster plan for his rabbit. I don’t think this is such a bad idea — have you ever seen Bullwinkle? [Lowering the Bar]

* The Middle Class is disappearing in the country. Why can’t we get a disaster plan for them like we have for that rabbit? [Lawyers, Guns & Money]

* Patton Boggs is rebooting. Just like when a TV show adds a long-lost cousin in season 8, this isn’t a sign of weakness at all. [Politico]

* President Obama, speaking of the Trayvon Martin case, notes: “There are very few African-American men in this country who haven’t had the experience of being followed when they are shopping at a department store. And that includes me.” See, he was uniquely prepared for the job of being followed by security guys EVERYWHERE. The difference, of course, is he knows these guys aren’t going to shoot him. [NBC Politics]

* A Miami firm is suing LexisNexis for “deceptive” fees. If they’re going to litigate this case, they’d better hope their Westlaw bill is paid in full. [Miami New Times]

* The reporter’s privilege had a bad day. After all that’s been revealed in the last couple months, let’s all agree it’s only newsworthy when the reporter’s privilege has a good day. [PrawfsBlawg]

* Dewey have some false expectations of success for this partner settlement agreement? Only one in four affected partners have signed on the dotted line, but advisers think the plan will win bankruptcy court approval. [Am Law Daily]

* “There comes a point where the prospects of substantially increasing your income just outweigh everything else.” Even on his $168K salary, this appellate judge wasn’t rich in New York City, so he quit his job. [New York Law Journal]

* The middle class needs lawyers, and unemployed law school graduates need jobs. The solution for both problems seems pretty obvious, but starting a firm still costs money, no matter how “prudent” you are. [National Law Journal]

* “This is a time when law schools are trying to look carefully at their expenses and not add to them.” New York’s new pro bono initiative may come at a cost for law schools, too. [Thomson Reuters News & Insight]

* Much to Great Britain’s dismay, Ecuador has announced that it will grant political asylum to Julian Assange of WikiLeaks fame. Sucks for Ecuador, because Assange is known to not flush the toilet. [New York Times]

* A smooth criminal gets a break: Michael Jackson’s father dropped a wrongful death suit against Dr. Conrad Murray. It probably would’ve been helpful if his attorneys could actually practice in California. [Washington Post]

* Did Lindsay Lohan’s lawyers plagiarize documents from internet websites in their defamation filings against Pitbull? You can deny it all you want, but his lawyer is out for blood and sanctions. [New York Daily News]