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Economic Freedom Matters!

Posted By Anthony B. Kim On April 20, 2010 @ 11:00 am In Economics | Comments Disabled

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Richard Florida, who is the author of “The Rise of Creative Class,” posed the following vital questions in his recent article “Free, Tolerant, and Happy” in The Atlantic [2]:

To what extent is economic freedom associated with tolerance and happiness? Are freer nations also more tolerant? Are their residents happier than those of other nations? To what extent is economic freedom also associated with other factors like affluence and material well?being, the level of human capital, and the transition to postindustrial economic structures? And what is the relationship between freedom and economic inequality?”

In answering these questions, Mr. Florida deftly employed the Heritage Foundation’s Index of Economic Freedom [3], a data-driven analytical tool for a wide range of audiences including policy makers and investors. Illustrating statistically important relationships between economic freedom and other key independent variables such as competitiveness, tolerance, and life satisfaction, Mr. Florida pointed out:

Perhaps the most interesting finding to emerge from our analysis concerns the relationship between economic freedom and inequality. The relationship is often seen in terms of a trade-off. The ability to pursue one’s economic dreams unencumbered by social or institutional restraint is seen as conditioning higher levels of inequality. But that’s not what we found. In fact, our analysis indicates that the relationship between economic freedom and income inequality is negative. That is, freer countries are on balance more equal. Many of the countries with the highest levels of economic freedom also have the highest levels of economic equality… Freer, happier societies reflect the old adage of a rising tide that lifts all boats. That’s something Americans should keep in mind as the nation grapples with how best to generate economic growth, create jobs, and deal with rising social and economic inequality in the ongoing era of the Great Reset.”

Indeed, it is time to restore our economic freedom that will rejuvenate America’s future.


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2010/04/20/economic-freedom-matters/

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[1] Image: http://www.foundry.org/wp-content/uploads/American-flag.jpg

[2] “Free, Tolerant, and Happy” in The Atlantic: http://www.theatlantic.com/international/archive/2010/04/free-tolerant-and-happy/39127/

[3] Heritage Foundation’s Index of Economic Freedom: http://www.heritage.org/Index/

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