• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Government Regulations, Spending Erode America's Economic Freedom

    Congressional passage of three free-trade agreements yesterday marked a rare victory for economic freedom in America. But the United States has a long way to go before it regains its status as a leader in economic freedom, according to a new video from the Charles Koch Institute.

    Government regulations and rapidly rising federal spending have curtailed economic freedom in the United States. The result is a poor economy with high unemployment.

    The Koch Institute bases its findings on the latest Economic Freedom of the World Report. Heritage’s annual Index of Economic Freedom, published in conjunction with the Wall Street Journal, has shown a similar trend for the United States in recent years. The United States ranks ninth, behind Canada, Ireland and Denmark.

    Under the Obama administration, the United States has lost ground compared to its global counterparts. Ambassador Terry Miller, director of Heritage’s Center for International Trade and Economics, highlighted the stark contrast between the United States and Germany to show how two government policies can impact economic freedom:

    Seen in the context of the Index of Economic Freedom, the results are dramatic and instructive. Before the recession, the U.S. economy, with its significantly higher traditional levels of economic freedom, was performing better than Germany’s. Since the onset of the recession, Germany has increased its citizens’ economic freedom, while in the United States, economic freedom has been curtailed. German economic performance now outpaces that of the United States.

    The Koch Institute video illustrates the U.S. decline. For example, it costs U.S. businesses $1.75 trillion to comply with government regulations. That’s enough money to employ 43 million people, more than 25 percent of the U.S. workforce.

    The video is part of the Koch Institute’s Economic Freedom Project. The first video, which explained how economic freedom improves quality of life, was a viral hit this summer.

    Posted in Scribe [slideshow_deploy]

    2 Responses to Government Regulations, Spending Erode America's Economic Freedom

    1. Michael Cook says:

      What is causing the loss of jobs and the stagnation in our economy? Listen for a good explanation.

    2. Bobbie says:

      can someone please stop what's going on? the cover ups, the lies, the insincerities, the indignations! people are killing their families and committing suicide because the promised "change and hope" wasn't what it is cracked up to be! Sound structure has to return and arrests need to be made!

      Congress, please stop giving into the destruction being caused by the president's free will. Expose accountability. Stop the spending and the unconstitutional acts. Please keep in mind what media quotes as "conservative principles" are principles derived from American principles, only! Call them American principles. The focus will recall the uniform understanding of America, which has been corrupted and continues to be corrupt by low life leadership with improper intent. Bring America back!! Humanity world wide, deserves her!

    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.

    ×