• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • The U.S. Isn't as Free as It Used to Be

    Index of Economic Freedom

    The United States is losing ground to its major competitors in the global marketplace, according to the 2010 Index of Economic Freedom released today by the Heritage Foundation and The Wall Street Journal. This year, of the world’s 20 largest economies, the U.S. suffered the largest drop in overall economic freedom. Its score declined to 78 from 80.7 on the 0 to 100 Index scale.

    The U.S. lost ground on many fronts. Scores declined in seven of the 10 categories of economic freedom. Losses were particularly significant in the areas of financial and monetary freedom and property rights. Driving it all were the federal government’s interventionist responses to the financial and economic crises of the last two years, which have included politically influenced regulatory changes, protectionist trade restrictions, massive stimulus spending and bailouts of financial and automotive firms deemed “too big to fail.” These policies have resulted in job losses, discouraged entrepreneurship, and saddled America with unprecedented government deficits.

    In the world-wide rankings of economic freedom, the U.S. fell to eighth from sixth place. Canada now ranks higher and boasts North America’s freest economy. More worrisome, for the first time in the Index’s 16-year history, the U.S. has fallen out of the elite group of countries identified as “economically free” by the objective measures of the Index. Four Asia-Pacific economies now sit atop the global rankings. Hong Kong stands in first place for the 16th consecutive year, followed by Singapore, Australia and New Zealand. Every region of the world maintains at least one country among those deemed “free” or “mostly free” by the Index.

    Columnist Mary O’Grady discusses the Heritage Foundation’s Index of Economic Freedom for 2010.

    Some countries, notably Britain and China, have followed America’s poor example and curtailed economic freedom. But many others—such as Poland, South Korea, Mexico, Japan, Germany and even France—have maintained or expanded economic freedom despite the global crisis. Ignoring the pressures of recession, these enlightened nations have continued to liberalize their economies, granting their entrepreneurs and consumers greater freedom. As a result, the average Index score dropped only 0.1 point in 2010. Eighty-one countries out of the 179 ranked recorded higher scores than in 2009.

    These trends are important because study after study shows a strong correlation between economic freedom and prosperity. Citizens of economically freer countries enjoy much higher per-capita incomes on average than those who live in less free economies. Economic freedom also has positive impacts on overall quality of life, political and social conditions, and even on protection of the environment. Perhaps of most significance in these hard times, Index data indicate that freer economies do a much better job of reducing poverty than more highly regulated economies.

    The public sector can’t match the vitality of the private sector in promoting growth. Governments, even those that promise change, are primarily agents of the status quo. They tend to reflect the views and needs of those already holding political or economic power. Even democratic nations have their vested interests. Real change, however, can happen when those outside the mainstream have the freedom to try new things: new production processes, new technologies and new methods of organizing workers and capital.

    It is common these days to dismiss as simpletons or ideologues those who speak in favor of the free market or capitalism. An honest assessment shows otherwise. Economic freedom, as represented in the Index of Economic Freedom, is a philosophy that rejects economic dogma, championing instead the diversity that follows when entrepreneurs are free to choose their own paths to prosperity.

    The abiding lesson of the last few years is that the battle for liberty requires perpetual vigilance. President Obama professes desire to foster prosperity, environmental protection, poverty reduction and better health care. How ironic, then, that his economic proposals so consistently ignore or even undermine the one system—free enterprise capitalism—that has proven best able to achieve those goals.

    Now America’s once high-flying economy is barely crawling forward. Americans deserve better, and they can do better—as soon as they reverse course and start regaining the economic freedom that made America the most prosperous country in the world.

    Mr. Miller is director of the Center for International Trade and Economics at the Heritage Foundation. He is co-editor, with Kim R. Holmes, of the “2010 Index of Economic Freedom” (471 pages, $24.95), available at JobsandFreedom.com/.

    Cross-posted from The Wall Street Journal

    Posted in Economics [slideshow_deploy]

    18 Responses to The U.S. Isn't as Free as It Used to Be

    1. Pingback: The U.S. Isn’t as Free as It Used to Be – The Foundry « HOME – Other Right Links and Posts

    2. Karolynn Ruppert says:

      Yes, We need to appeal the sixteenth amendment and activate thew Fair Tax!! many industries have vowed they'd return to America if it weren't for the insane taxation on new factories and such!! We still might suffer some before a come back, but the American spirit can do it!! Fair Tax! Fair Tax! Fair Tax! Dump and abandon all other taxes!!!

    3. Pingback: My HEIRITAGE 1/20/2010 ITEMS of INTEREST at Desert Conservative

    4. Pingback: Land of the ‘Mostly Free’? « Dancing Czars

    5. Bobbie Jay says:

      Thank you, Mr. Miller.

      Another piece of evidential proof, of government with no reason, over reaching, intervening and destroying the livelihoods of Americans and the economy.

      Americans Will, get back the economic freedom that has been stolen by government business owners, who were once, obligated by government, to trust.

      Americans now know better.

    6. Pingback: U. S. No Longer Considered Economically Free

    7. Pingback: LG Mobile – KP500 Cookie – Free Touch | Mobile Phone Site

    8. Pingback: American’s Lost Economic Freedom | Liberally Conservative

    9. Pingback: Report: America No Longer the Land of the ‘Free’ « OSPRI BLOG

    10. Pingback: Interventionist Government Policies Have Made America Less Free | The Foundry: Conservative Policy News.

    11. Pingback: Welcome to America, Land of the Less Free? | Conservative Principles Now

    12. Pingback: The United States is not as economically free as it used to be | The Foundry: Conservative Policy News. | LoriCamper.Com Blog

    13. Pingback: Garden State Patriot | America Drops In Economic Freedom Ranking

    14. Pingback: Who’s Calling – Is there a Cell Phone Directory Out There? | Phone Lookup Reviews

    15. Richard Peasel, Mich says:

      I am seeing a subtle shift in America culture over the last few decades. At one time most Americans were proud to be self-sufficient, and embarrassed to even admit to receiving any type of government welfare. However; today, I am running across more and more Americans, who actually brag about getting a free electric car, or a government mortgage bailout, or a free college education, or subsidized installation in their homes.

      I am afraid that Americans may be coming addicted to free things instead of freedom. I am afraid that Article 1 of the constitution is being interpreted as “control of individual welfare” instead of “provide for the common Defense and general welfare…… “

    16. Pingback: The United States of America demoted to “Mostly Free”

    17. Pingback: What Next? PETA Proposes Robot Groundhog | The Foundry: Conservative Policy News.

    18. Pingback: What Next? PETA Proposes Robot Groundhog | Conservative Principles Now

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×