Earlier quoted context omitted.
This simple change in the USA legal system would benefit a lot of people. Prevent frivolous lawsuits. Allow the poor to sue when they do have a case but no money to fallow through. and help end SLAPP. Just another example where the USA needs improvement and is not the best in the world.
>Allow the poor to sue when they do have a case but no money to fallow through. The issue is that lawsuits are often not obvious. There's almost always a non-trivial risk of losing. Therefore, in a universal "loser pays" system, it's even riskier for a poor (or even middle-class) person to sue a company given that they could be responsible for bankruptcy-level legal fees if they lose.
The simple[1] solution to that would be “loser pays if they spent more”. Which might seem odd at first glance (why punish the loser even more?), but would align the incentives in the right direction.
[1] Read: I haven't put much thought into ways this could be abused