Is the American dream in jeopardy? The Morning Bell put out by The Heritage Foundation on April 19, 2011, said that the American dream is in jeopardy because large American corporations are "cutting back on their domestic workforces and increasing hiring overseas." This movement is a sign that America has a serious problem in economic freedom.
"Big government policies are setting us on a path away from a fundamental freedom we cherish - one the Founders strove to preserve. It's the freedom to pursue the American dream of `economic freedom' that, tragically, is in jeopardy."
The Morning Bell included the following quote by Kim R. Holmes, Ph.D. and Matthew Spalding, PhD., previously printed in The Heritage Foundation's "Understanding America" series: "America's founders knew that liberty is about more than just securing political freedoms. True liberty requires economic freedom - the ability to profit from our own ideas and labor, to work, produce, consume, own, trade, and invest according to our own choices. Thomas Jefferson underscored that point when he observed that `a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement.'"
The United States is no longer considered to be "free" economically but "mostly free." According to the 2011 Index of Economic Freedom, the United States fell from eighth place to ninth internationally. The lower ranking reflects deteriorating business freedom, trade freedom, government spending, and monetary freedom. Hong Kong is ranked as number one in the world in economic freedom and is followed by Singapore, Australia, New Zealand, Switzerland, Canada, Ireland, and Denmark. Bahrain is in the tenth spot.
According to the Index, "Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself."
The economic freedom in each nation is measured by ten components with each component receiving a grade. Then the ten component grades are average to obtain the overall economic freedom. The ten components of economic freedom are: business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption, and labor freedom.
Will the United States continue to fall in economic freedom? Can the American dream survive or will it simply continue to disintegrate?
Showing posts with label 2010 Index of Economic Freedom. Show all posts
Showing posts with label 2010 Index of Economic Freedom. Show all posts
Tuesday, April 26, 2011
Thursday, November 4, 2010
Economic Freedom
The topic for this Freedom Friday is economic freedom. The Index of Economic Freedom - The Link Between Economic Opportunity and Prosperity has ranked the nations of the world on their economic freedom for the past sixteen years. The Index uses ten criteria to judge each nation: freedoms related to business, trade, fiscal matters, monetary matters, investment, finance, labor, government spending, property rights, and freedom from corruption.
The 2010 Index of Economic Freedom covers 183 countries but ranks only 179 across the 10 specific areas of freedom. The United States ranked sixth in 2009, but it dropped to number eight in 2010. The top ten nations in 2010 are: Hong Kong, Singapore, Australia, New Zealand, Ireland, Switzerland, Canada, United States, Denmark, and Chili. (Just for your information, the bottom ten are: North Korea, Zimbabwe, Cuba, Eritrea, Burma, Venezuela, Libya, Democratic Republic of Congo, Turkmenistan, and Solomon Islands.)
John Stossel pointed out that this Index covers the last six months of the Bush Administration as well as the first six months of the Obama Administration; therefore, the problem belongs to both Democrats and Republicans.
“The index demonstrates…: Economic freedom leads to prosperity. Also, the best places to live and the fastest growing economies are among the freest, and vice versa. A society will be materially well off to the extent its people have the liberty to acquire property, start businesses, and trade in a secure legal and political environment.”
Stossel quoted Bill Beach, director of the Heritage Foundations Center for Data Analysis, which compiles the index with The Wall Street Journal, as saying that the index defines “economic freedom” to mean: “You can follow your dreams, express yourself, create a business, do whatever job you want. Government doesn’t run labor markets, or plan what business you can open, or over-regulate you…. For the first time in 16 years, the United States fell from the `totally free’ group to the ‘mostly free’ group.”
It appears to me that Thomas Jefferson was correct once again when he said, “I think all the world would gain by setting commerce at perfect liberty.” Our government is spending too much money and hitting businesses with too many regulations. The figures from the index show that the United States must make government smaller and free businesses to do what the private sector does best – make money. If the oppression of businesses continues to increase, we can expect more companies to move to countries that offer them more freedoms. Economic freedom is a necessity if the United States is to move back to the “totally free” group of nations.
The 2010 Index of Economic Freedom covers 183 countries but ranks only 179 across the 10 specific areas of freedom. The United States ranked sixth in 2009, but it dropped to number eight in 2010. The top ten nations in 2010 are: Hong Kong, Singapore, Australia, New Zealand, Ireland, Switzerland, Canada, United States, Denmark, and Chili. (Just for your information, the bottom ten are: North Korea, Zimbabwe, Cuba, Eritrea, Burma, Venezuela, Libya, Democratic Republic of Congo, Turkmenistan, and Solomon Islands.)
John Stossel pointed out that this Index covers the last six months of the Bush Administration as well as the first six months of the Obama Administration; therefore, the problem belongs to both Democrats and Republicans.
“The index demonstrates…: Economic freedom leads to prosperity. Also, the best places to live and the fastest growing economies are among the freest, and vice versa. A society will be materially well off to the extent its people have the liberty to acquire property, start businesses, and trade in a secure legal and political environment.”
Stossel quoted Bill Beach, director of the Heritage Foundations Center for Data Analysis, which compiles the index with The Wall Street Journal, as saying that the index defines “economic freedom” to mean: “You can follow your dreams, express yourself, create a business, do whatever job you want. Government doesn’t run labor markets, or plan what business you can open, or over-regulate you…. For the first time in 16 years, the United States fell from the `totally free’ group to the ‘mostly free’ group.”
It appears to me that Thomas Jefferson was correct once again when he said, “I think all the world would gain by setting commerce at perfect liberty.” Our government is spending too much money and hitting businesses with too many regulations. The figures from the index show that the United States must make government smaller and free businesses to do what the private sector does best – make money. If the oppression of businesses continues to increase, we can expect more companies to move to countries that offer them more freedoms. Economic freedom is a necessity if the United States is to move back to the “totally free” group of nations.
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