From the Right

/

Politics

Which Nations Are the Freest, and Why Should We Care?

: Veronique De Rugy on

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

Economic freedom isn't just some wonky concept debated in academic halls. It's about whether a government protects property rights or seizes assets at will; whether regulations are sensible or suffocating; whether you can trade freely or face a maze of obstructions; whether your money holds its value or your purchasing power gets eroded by government mismanagement; and whether you can count on courts to enforce contracts fairly.

The 2024 index, using the latest available data from 2022, measures precisely these factors across 165 countries, as it has done since 1996. The results are striking.

The freest economies enjoy an average GDP per capita about 7.6 times greater than that of the 25% least economically free places. They have cleaner environments, better health care outcomes, and longer life expectancies -- by a lot. Even the poorest citizens of free countries fare better than the middle classes in economically repressive nations.

Who are these lucky countries? "Hong Kong (1st), Singapore (2nd), Switzerland (3rd), New Zealand (4th), the United States (5th), Denmark and Ireland (tied for 6th), Canada (8th), and Australia and Luxembourg (tied for 9th)." It shouldn't be lost on my readers that Denmark, which Sen. Bernie Sanders (D-Vt.) often uses as an example of a socialist democratic regime, has far more in common with the United States than with a truly socialist country.

Speaking of socialist-like countries, the 10 least free are Yemen, Libya, Iran, Argentina, Myanmar, Algeria, Syrian Arab Republic, Sudan, Zimbabwe and Venezuela.

This isn't just about numbers. When Venezuela dismantled economic freedoms and became a socialist country through nationalizations, price controls, currency controls, and business and trade restrictions, it also went from being one of South America's richest countries to one that millions of citizens fled due to its poverty. Meanwhile, Botswana embraced economic freedom and transformed from one of Africa's poorest nations into a middle-income success story.

That's why economic freedom isn't chiefly about profits; it's about prosperity for ordinary people. The report reminds us why we shouldn't wish economic oppression on our worst enemies. For example, inhabitants of the 25% least economically free countries experience infant mortality rates nine times greater than those who live in the freest 25%. Extreme poverty is 30 times likelier. Child labor is routine, as is illiteracy, especially among girls.

The consequences reach far beyond stock markets or GDP figures. Sadly, this year's report reveals the continuation of a troubling trend. After decades of expanding economic freedom that lifted over 1 billion people out of poverty, we're now witnessing a global retreat. Global economic freedom is in decline for the third consecutive year.

 

Even traditionally free economies like the United States are slipping, with increased government spending, heavier regulatory burdens and higher trade restrictions. In addition, COVID-19 lockdowns and other pandemic-era government tyrannies are showing their ugly faces in the data.

The stakes are exceptionally 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 isn't on the ballot in an especially clear way. Both Vice President Kamala Harris and former President Donald Trump are eager to deploy and expand the government into many economic areas of our lives. We Americans must therefore choose a candidate along different margins.

Nevertheless, 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 rather than relying on the blindered purview of a few regulators.

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

Let's remember that economic freedom isn't about abstract ideology -- it's about real people enduring 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 that's something worth protecting.

Veronique de Rugy is the George Gibbs Chair in Political Economy and a senior research fellow at the Mercatus Center at George Mason University. To find out more about Veronique de Rugy and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate webpage at www.creators.com.

----


Copyright 2024 Creators Syndicate, Inc.

 

Comments

blog comments powered by Disqus

 

Related Channels

Armstrong Williams

Armstrong Williams

By Armstrong Williams
Austin Bay

Austin Bay

By Austin Bay
Ben Shapiro

Ben Shapiro

By Ben Shapiro
Betsy McCaughey

Betsy McCaughey

By Betsy McCaughey
Cal Thomas

Cal Thomas

By Cal Thomas
Christine Flowers

Christine Flowers

By Christine Flowers
David Harsanyi

David Harsanyi

By David Harsanyi
Debra Saunders

Debra Saunders

By Debra Saunders
Dennis Prager

Dennis Prager

By Dennis Prager
Erick Erickson

Erick Erickson

By Erick Erickson
John Stossel

John Stossel

By John Stossel
Josh Hammer

Josh Hammer

By Josh Hammer
Judge Andrew Napolitano

Judge Andrew Napolitano

By Judge Andrew P. Napolitano
Laura Hollis

Laura Hollis

By Laura Hollis
Michael Barone

Michael Barone

By Michael Barone
Michael Reagan

Michael Reagan

By Michael Reagan
Mona Charen

Mona Charen

By Mona Charen
Oliver North and David L. Goetsch

Oliver North and David L. Goetsch

By Oliver North and David L. Goetsch
R. Emmett Tyrrell

R. Emmett Tyrrell

By R. Emmett Tyrrell
Rachel Marsden

Rachel Marsden

By Rachel Marsden
Rich Lowry

Rich Lowry

By Rich Lowry
Ruben Navarrett Jr

Ruben Navarrett Jr

By Ruben Navarrett Jr.
S.E. Cupp

S.E. Cupp

By S.E. Cupp
Salena Zito

Salena Zito

By Salena Zito
Star Parker

Star Parker

By Star Parker
Stephen Moore

Stephen Moore

By Stephen Moore
Terence P. Jeffrey

Terence P. Jeffrey

By Terence P. Jeffrey
Tim Graham

Tim Graham

By Tim Graham
Victor Joecks

Victor Joecks

By Victor Joecks
Wayne Allyn Root

Wayne Allyn Root

By Wayne Allyn Root

Comics

Walt Handelsman A.F. Branco Eric Allie Ed Gamble Jimmy Margulies Jeff Koterba