We’re number ten! (And falling)
The National Review reports that Heritage Foundation and the Wall Street Journal have just published their 2004 Index of Economic Freedom.
The top ten nations this year are as follows:
- Hong Kong
- Singapore
- New Zealand
- Luxembourg
- Ireland
- Estonia
- Great Britain
- Denmark
- Switzerland
- United States
In 2001, the US was number five, and in 2003, the US was ninth.
The US scores well on monetary policy, property-rights protection, and banking and finance. But cost of government is where we score badly.
This is an arbitrary index, so what does it matter? Well, the purpose of the score is to rate a nation’s economic freedom. And the nations that score better have a higher economic growth rate and per-capita income.
Among countries dubbed "Repressed," the Index found average per-capita income in 2001 at $3,316. For "Mostly Unfree" states, the equivalent figure was $3,535. Per-capita incomes rocketed to $13,027 for "Mostly Free" nations, then nearly doubled to $26,036 for the 16 countries the Index calls "Free.
