The annual report from Canadian think tank & research group the Fraser Institute ranking the economic freedom of the world’s nations has published with disturbing results. America, which ranked 3rd in economic freedom 10 years ago, has dropped to a sad 18th place. Why? Because of stifling shackles placed upon industry by rampant regulations, inflation and mass taxes levied across virtually every sector of industry.
“The United States, long considered the standard bearer for economic freedom among large industrial nations, has experienced a substantial decline in economic freedom during the past decade,” the Fraser report states.
In the Executive Summary of the report, it states the criteria used to rank countries, which are:
1 Size of Government;
2 Legal System and Property Rights;
3 Sound Money;
4 Freedom to Trade Internationally;
Obviously the U.S. is a bloated corpse of a governmental system, especially after the hiring of the tens of thousands of new IRS agents for Obamacare. Sound money? Not our forte. Buzz Bernanke is seeing to that, making sure to devalue our currency to the point of comedy with his new round of never-ending quantitative easing. Regulations? We got ’em in spades. The Obama administrations current regulatory actions and those set to hit us in 2014 will cost an estimated twenty times what was originally assumed. In fact, Obama’s economy stifling ways and his administration’s regulations have cost 5 times those of his predecessor. It’s not hard to see why we have dropped so precipitously.
Liberals will decry economic freedom as enabling a top-heavy system that rewards corporations and the little people being taken advantage of, yet statistically the proof proves the opposite. According to Fraser’s research:
Nations that are economically free out-perform non-free nations in indicators of well-being.
• Nations in the top quartile of economic freedom had an average per-capita GDP of $37,691 in 2010, compared to $5,188 for bottom quartile nations in 2010 current international dollars (Exhibit 1.7).
• In the top quartile, the average income of the poorest 10% was $11,382, compared to $1,209 in the bottom in 2010 current international dollars (Exhibit 1.10). Interestingly, the average income of the poorest 10% in the most economically free
nations is more than twice the overall average income in the least free nations.
• Life expectancy is 79.5 years in the top quartile compared to 61.6 years in the bottom quartile (Exhibit 1.11).
• Political and civil liberties are considerably higher in economically free nations than in unfree nations (Exhibit 1.12).
It would be lovely if Obama would wake up and stop regulating our country further into this recession, but that is highly unlikely to happen. He is a man who believes his own created myths and no damning statistical evidence will change his path. Not even the approaching fiscal cliff.