” When we talk about “economic freedom,” what do we mean—and why does it matter?
Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state.
Since reaching a global peak in 2008, sadly, economic freedom around the world has continued to stagnate.
What are the reasons for the worldwide sluggishness? As Ambassador Miller writes in The Wall Street Journal, “Particularly concerning are the rise of populist ‘democratic’ movements that use the coercive power of government to redistribute income and control economic activity.”
While “corrupt political and legal environments cause underdevelopment in poorer countries,” Miller writes, “unfortunately, economic favoritism and cronyism exist in advanced democracies, too.” Americans are well aware, and the overall U.S. score has been dropping since 2009. From 2009 to 2010, the U.S. declined from being a “free” economy to “mostly free.” This year, it ranks 10th in the world. “
So , economic freedom in the US has taken a downturn since 2009 . What came about in 2009 to cause our precipitous drop in the rankings ? Where will we being after four more years ?
” One reason for America’s lack of freedom is that its scores on regulatory efficiency—which include business freedom and labor freedom—have dropped. The editors point to the fact that “over 100 new major federal regulations have been imposed on business operations since early 2009 with annual costs of more than $46 billion.” ”
Surprise , surprise … Regulation is the culprit . Who would have guessed ?
” It is no exaggeration to blame the recent slowdown in economic liberalization around the world on the lack of U.S. leadership. Trade flows—the engine of world growth—have declined as the U.S. economy has stagnated. Protectionism threatens consumers and businesses with higher costs and restrictions in supply. Ill-conceived banking regulations such as the Dodd-Frank law generate uncertainty and anxiety. And investment freedom declines in the face of higher costs and new legal and tax liabilities such as those introduced by ObamaCare. These misguided U.S. policies hurt Americans first, but others feel the harm as well. “
Lack of leadership in the ” Leader of the Free World ” is very costly , not just to Americans but to all the citizens of the world .
” Launched in 1995, the Index evaluates countries in four broad areas of economic freedom: rule of law; regulatory efficiency; limited government; and open markets. Based on an aggregate score, each of 177 countries graded in the 2013 Index was classified as “free,” “mostly free,” “moderately free,” “mostly unfree,” or “repressed.”
The broader areas are broken down into 10 measures: property rights, freedom from corruption, fiscal freedom, government spending, business freedom, labor freedom, monetary freedom, trade freedom, investment freedom, and financial freedom.
The New Website
The updated website, launched today, is interactive:
Each country’s profile includes quick facts such as its population, gross domestic product (GDP), unemployment rate, and the amount of foreign investment flowing into the country—and you can embed this data in your blog or website.
Visit the 2013 Index of Economic Freedom “
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