Wednesday, January 14, 2009

Economic Freedom: The Road to Prosperity

The 2009 Index of Economic Freedom has just been released. The Wall Street Journal and The Heritage Foundation have collaborated for 15 years to measure economic freedom. The level of economic freedom is measured by a scoring system that includes the following components: Business Freedom; Trade Freedom; Fiscal Freedom; Government Size; Monetary Freedom; Investment Freedom; Financial Freedom; Property Rights; Freedom from Corruption; Labor Freedom.

Once again, those countries that scored highest on the Economic Freedom index enjoyed per capita income that was many times greater than those countries that repress these freedoms.

Here are the Top Ten countries:
  1. Hong Kong
  2. Singapore
  3. Australia
  4. Ireland
  5. New Zealand
  6. United States (down from #5 due to increase in taxes and govt spending)
  7. Canada
  8. Denmark
  9. Switzerland
  10. United Kingdom
The Worst Ten? (#1 is the worst, then count back):
  1. North Korea
  2. Zimbabwe
  3. Cuba
  4. Burma
  5. Eritrea
  6. Venezuela
  7. Democratic Republic of Congo
  8. Comoros
  9. Libya
  10. Sao Tome and Principe
Hmmm ... Singapore at 2nd best and Cuba 3rd worst out of 179 that were ranked. See "Cuba and Singapore: 1959 - 2009". There is no mystery here.

If you want prosperity, better to embrace free market -- yes, CAPITALIST ideals and practices. If living in misery and poverty is your pleasure, you can also make that choice and move to one of the countries that abhors capitalism. But beware, you may not have too many other choices once you unpack your bags -- they do have a way of smothering you. 

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