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.
Reprinted with Permission from CFIF.org – By Veronique de Rugy
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
The United States of America is the Freest Nation in the World for this reason..BY SIGNING THE DECLARATION OF INDEPENDENCE THE FIFTY-SIX AMERICANS PLEDGED THEIR LIVES THEIR FORTUNES AND THEIR SACRED HONOR. IT WAS NO IDLE PLEDGE – – –
NINE SIGNERS DIED OF WOUNDS DURING THE REVOLUTIONARY WAR FIVE WERE CAPTURED IR IMPRISONED. WIVES AND CHILDREN WERE KILLED, JAILED, MISTREATED OR LEFT PENNILESS. TWELVE SIGNERS’ HOUSES WERE BURNED TO THE GROUND. SEVENTEEN LOST EVERYTHING THEY OWNED, NO SIGNER DEFECTED – THEIR HONOR LIKE THEIR NATION, REMAINED INTACT. This is the UNITED STATES of AMERICA and WE BELIEVE in FREEDOM and WILLING TO FIGHT FOR IT.
Without FREEDOM, you have nothing. This is why I am voting for President Trump.
“..[I]t’s about prosperity for ordinary people.”
In most countries, Money = Power. When we’re taxed at high levels, ordinary people relinquish not only money but also power to the federal, state, and local governments.
When we are “allowed” to keep less of our gross income, we have fewer choices when it comes to spending it. So, we have less money to donate to the church or the political party of our choice. Less money to spend on a safer car, a bigger house for the growing family, an advanced college degree, or a better doctor. Less money to pay off the credit card bills, to heat the house to a reasonable temperature, to start a business, or to leave to the children.
It’s no wonder quality of life suffers when the government raises taxes. And that’s exactly what harris will do if she is elected this Tuesday. It’s that simple.
MAGA.
“When goods don’t cross borders, soldiers will” CLAUDE FREDERIC BASTIAT. A French economist in the 1800s.This has never been truer, before trade, theft and conquest spoils was how the uncivilized world operated. Capitalism and commerce go hand and hand to better society. Socialism is government’s way to do just the opposite. Government regulations can be created to stiffle anything they disagree with or push the agendas they do support. Commerce should be at the top of every nation.
Under biden/harris there is no Freedom. Under a harris administration there will be No Country or Freedom of any kind.
Under President Trump there is Freedom and the United States of America FIRST. Another excellent reason to vote for President Trump.
Still think communism works?
Very important article Veronique, As you stated in the last sentence about human potential being something worth protecting , that surely is true. And having knowledge of how various countries are dealing with the matter of economic freedom makes for having an understanding of conditions that are in the vital information category The field, the profession of international law is something that should be of more interest as the differences between those countries with freedom and those where freedom is either threatened,or compromised or not existing due to manipulation of economic policies by those interested in control of as many people possible by whatever means possible. In the spirit of God bless America, land of the free, home of the brave. This article should be appreciated by all right thinking people who care about Truth and Liberty..
Since Hong Kong came under China rule, one must ask how long such freedom will last there.
Should the US being in 5th place surprise anyone with all the regulations being imposed in the last quarter century as well as all the environmenatal activists pushing even greater control. That one of the criteria was clean water/air, which the US has pushed for a century or longer, is proof those greenies are full of it and their green scam is just a money grabbing scheme.
We have just survived 4 years of the most repressive administration, which may be why they had to use 2022 data points to keep the US in 5th place. Should Harris be voted, or cheated, into office be prepared for the USA falling out of the top 10!
For those of us who fortunate enough to be born or naturalized U.S. citizens, ask yourself, what did God see in you to give you the opportunity to be an American citizen when billions of others are not? We are so damn lucky. I thank God on my knees every single day.
Why is mainland China not included in the commentary?
Hey, de Rugy, has it ever occurred to you that Venezuelas financial difficulties began when the US and the slave countries it owns across western Europe sanctioned the nation for not following some rules based order of which there are no established rules other than “Obey thy God, the USA”
Weird how such financial terrorism has also made victims from other free thinking nations such as Cuba and North Korea and damned if the collective west reached too far by attempting to financially isolate Russia as well. That ended up well huh? Ask any German whose career has ended from business closures caused by too expensive petroleum or the Brit who has to turn his thermostat down to the mid 40s this winter for the same reason. Also look at a now totally unarmed western Europe because their overlords in D.C insisted they give their arms and finances to Americas most unlucky proxy, Ukraine. You know, Ukraine the nation of a million dead soldiers at least all because the US is too gutless and weak to fight their own disputes. OH, thats right, America is actually super powerful, we just played weak when 5’2″ 110 pound militia members in Viet Nam kicked our asses followed buy xerox like copies of similar wars across the globe as in the recent Afghan loss. Russia kicking the ass of the US and the entirety of its puppet organization, NATO tops the cake though. We fight a peer and boy are we going to end up limpiing home, broke and humiliated once again.
God bless America!