Heritage Foundations releases 2012 Index of Economic Freedom

On Thursday, the Heritage Foundation and the Wall Street Journal released the 2012 Index of Economic Freedom, an annual report on economic freedom across the globe that measures interventionist government policies and ranks countries accordingly.

Ed Feulner, president of the Heritage Foundation, gives us an idea of what we’ll find in this year’s report, and it’s not pretty:

As Friedrich A. Hayek foresaw decades ago, “The guiding principle in any attempt to create a world of free men must be this: a policy of freedom for the individual is the only truly progressive policy.” Thus, the battle of ideas must also be a battle for the meaning of the very words with which we debate. Is it “progressive” to utilize the coercive power of the state to redistribute and level incomes within a society? Is it “liberal” to build a massive state apparatus to regulate conditions of employment, usage of energy, and access to capital? The answers to such questions will determine how we live as individuals in the 21st century.

The 2012 Index of Economic Freedom documents a global economy that is engaged in this evolving battle between the forces of government and free markets. Today’s troubles have been neither accidental nor inevitable. The problems we face are the outcomes of politically driven and economically self-defeating policy decisions that have turned an economic slowdown into an accelerating decline.

Unfortunately, the report shows that the United States has, once again, lost more economic freedoms as corruption, cronyism, government spending, and a poor monetary policy continue to drag us down. While we are still ranked as “mostly free,” we can no longer say our economy is the ambition of the world.

Hong Kong and Singapore hold the top two spots once again, but here are the 10 ten freeiest economies in the world:

  1. Hong Kong
  2. Singapore
  3. Australia
  4. New Zealand
  5. Switzerland
  6. Canada
  7. Chile
  8. Mauritius
  9. Ireland
  10. United States

As you can see, we have a long way to go to restore our economy to the envy of the world. Sadly, we aren’t on a track to do that anytime soon as many in Washington seem determined to venture down failed path that so many others have tried.


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