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The principal purpose underlying tort damage awards is the compensation of the victim for his loss.1 Effecting this purpose, however, can prove difficult. Suppose that D, through the negligent operation of his automobile, strikes P, a forty-five-year-old manufacturing worker. P's injuries prove serious and he is left permanently unable to work. If a court finds D liable at trial, it can calculate a portion of the award with ease by adding together the costs P has already incurred, such as past medical expenses, outpatient therapy charges, damage to property, and earnings lost before trial. Calculating the remaining portion of P's award, however, entails adding together the future earnings P will lose because he is unable to work. That calculation is complicated by having to predict events yet to occur.2

Inflation, Productivity, and the Total Offset Method of Calculating Damages for Lost Future Earnings