Posted 9:13 am Wednesday, September 26, 2012
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Economic liberty, September 26
Research shows economic freedom (the ability to pursue economic activity without interference from government as long as your actions don't violate the identical ability of others) is positively correlated with economic prosperity as measured by things like economic growth rates, per capita GDP, poverty rates, and rates of technical innovation. As a result, various organizations track global trends in economic freedom.
In the U.S., the Heritage Foundation and Wall Street Journal have conducted such studies.
In Canada, the Frazer Institute, an economics “think tank,” also does such investigations. Because their methodologies differ somewhat, these inquiries don't yield identical results; however, regarding the U.S., they both indicate that our economic freedom is declining.
This pattern is especially pronounced in the Fraser Institute's reports, which show the U.S.'s worldwide ranking dropping from 3rd in 2000, to 8th in 2005, to 18th in 2010 — the latest year for which figures are available.
While the Obama Administration isn't solely responsible for this trend, the rapidity with which our economic freedom has declined strongly suggests its policies are a factor.
Recent policy developments adversely impacting economic freedom include: greater regulation of business activities, greater regulation of credit markets, increased corruption and cronyism, the growth of government relative to the private sector, the rise in government debt relative to GDP, and the imposition of more non-tariff restrictions on trade.
If our country is to get back on the path to prosperity, we must elect leaders who understand how our economy functions.
Cliff Hickman
Henderson
In the U.S., the Heritage Foundation and Wall Street Journal have conducted such studies.
In Canada, the Frazer Institute, an economics “think tank,” also does such investigations. Because their methodologies differ somewhat, these inquiries don't yield identical results; however, regarding the U.S., they both indicate that our economic freedom is declining.
This pattern is especially pronounced in the Fraser Institute's reports, which show the U.S.'s worldwide ranking dropping from 3rd in 2000, to 8th in 2005, to 18th in 2010 — the latest year for which figures are available.
While the Obama Administration isn't solely responsible for this trend, the rapidity with which our economic freedom has declined strongly suggests its policies are a factor.
Recent policy developments adversely impacting economic freedom include: greater regulation of business activities, greater regulation of credit markets, increased corruption and cronyism, the growth of government relative to the private sector, the rise in government debt relative to GDP, and the imposition of more non-tariff restrictions on trade.
If our country is to get back on the path to prosperity, we must elect leaders who understand how our economy functions.
Cliff Hickman
Henderson
