Countries with economic freedom fare much better

The ability to choose a job, start a business, own real estate, or decide how to spend a salary may seem natural to most Americans. Yet for billions of people around the world, the most basic economic freedoms remain out of reach. The latest Index of World Economic Freedom, just released by the Fraser Institute, reminds us why freedom matters to everyone, whether you’re a factory worker in Michigan, a tech entrepreneur in Austin, or a farmer in Niger.

Economic freedom is not just some flimsy concept discussed in the halls of academia. It’s about whether the government protects property rights or seizes assets at will; whether the rules are reasonable or stifling; can you trade freely or face a labyrinth of obstacles; whether your money will retain its value or whether your purchasing power will decline due to government mismanagement; and whether you can count on the courts to enforce contracts fairly.

The 2024 index, based on the latest available data from 2022, accurately measures these factors in 165 countries, as it has done since 1996. The results are amazing.

In the freest economies, average gross domestic product (GDP) per capita is about 7.6 times higher than in the least economically free 25 percent of countries. They have cleaner environments, better health outcomes, and longer life expectancies—by a lot. Even the poorest citizens of free countries fare better than the middle class in economically repressive countries.

Who are these lucky ones? “Hong Kong (1st place), Singapore (2nd place), Switzerland (3rd place), New Zealand (4th place), USA (5th place), Denmark and Ireland (6th place ), Canada (8th place), as well as Australia and Luxembourg (equal places). for 9th place)”. It should not be lost on my readers that Denmark, which Senator Bernie Sanders (D-Vermont) often uses as an example of a socialist democratic regime, has much more in common with the United States than with a truly socialist country.

Speaking of socialist countries, the ten least free are Yemen, Libya, Iran, Argentina, Myanmar, Algeria, Syrian Arab Republic, Sudan, Zimbabwe and Venezuela.

It’s not just about the numbers. As Venezuela destroyed economic freedoms and became a socialist country through nationalization, price controls, currency controls, and restrictions on business and trade, it also went from being one of the richest countries in South America to one from which millions of citizens fled due to its poverty. Meanwhile, Botswana embraced economic freedom and transformed itself from one of the poorest countries in Africa to a successful middle-income country.

This is why economic freedom is not just about profit; it’s about the prosperity of ordinary people. The report reminds us why we should not wish economic oppression upon our worst enemies. For example, residents of the least economically free 25 percent of countries have an infant mortality rate nine times higher than those living in the freest 25 percent. Extreme poverty is 30 times more likely. Child labor is common, as is illiteracy, especially among girls.

The implications go far beyond stock markets or GDP figures. Unfortunately, this year’s report shows a worrying trend continuing. After decades of expanding economic freedom that lifted more than 1 billion people out of poverty, we are now witnessing a global setback. Global economic freedom is in decline for the third year in a row.

Even traditionally free economies such as the United States are struggling due to increased government spending, heavier regulatory burdens, and tighter trade restrictions. The data also shows the ugly faces of COVID-19 lockdowns and other pandemic-era government tyrannies.

The stakes are extremely high. We face global challenges with the rise of right-wing authoritarian regimes hostile to immigration and other aspects of economic freedom. Even in the United States, economic freedom is not particularly prominent on the ballot. Both Vice President Kamala Harris and former President Donald Trump are committed to expanding and expanding government in many economic areas of our lives. Therefore, we Americans must choose a candidate based on different criteria.

However, we can insist that more future candidates embrace economic freedom as a core value. History shows that economically free societies are more resilient and adaptable. They respond to challenges through decentralized problem solving rather than central planning, unleashing the creative potential of millions of people rather than relying on the blind vision of a few regulatory bodies.

To bring America back to leadership, we must also address the areas where we are falling behind. This means trimming our out-of-control regulatory system, reforming a tax code that penalizes work, investment and innovation, and resisting the temptation to solve every problem with more government intervention.

Let’s remember that economic freedom is not an abstract ideology, but real people experiencing the consequences of real choices made by government officials about their lives. The index doesn’t just measure economic statistics; it measures human potential and is worth protecting.

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