Friday, January 8, 2016

Government Should Make Economic Freedom Its New Year's Resolution

Economic freedom is measured by, among other things, levels of personal choice, the ability to enter markets and the security of privately-owned property. According to the Fraser Institute's annual Economic Freedom of the World report, the United States ranks 16th in terms of being an economically free country. It is a significant fall from its second-place status in 2000.

"A weakened rule of law, the so-called wars on terrorism and drugs, and a confused regulatory environment have helped erode economic freedom in the United States," explains Fred McMahon, one of the report's authors.

There is a vast amount of literature on the benefits of economic freedom. For instance, a review of 45 studies by economists Chris Doucouliagos and Mehmet Ali Ulubasoglu shows a strong relationship between economic freedom and growth. But it is also associated with higher income levels (i.e., more money in people's pockets) and better environment outcomes (better living conditions).

https://reason.com/archives/2015/12/17/government-should-make-economic-freedom

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