US SLIPS TO 12TH IN
ECONOMIC FREEDOM
Editor-in-Chief at NY Analysis of Policy & Government
The United States has dropped in the ratings of economically free nations, losing a half point since last year’s survey.
According to a Wall Street Journal/Heritage Foundation survey, America lost ground due to deterioration in property rights, fiscal freedom, and business freedom. The U.S. doesn’t even score as the top nation in North America—that rank went to Canada.
Overall, America comes in at a dismal 12th place, behind Hong Kong (although that may soon change due to Beijing’s increased involvement in political affairs), Singapore, Australia, Switzerland, New Zealand, Canada, Chile, Mauritius, Ireland, Denmark, and Estonia. According to the survey the United States has experienced a dramatic decline since 2006. The principle reasons for the drop are diminished property rights, increased corruption, and higher government spending. The authors note that America is “The only country to have recorded a loss of economic freedom each of the past seven years. The overall U.S. score decline from 1995 to 2014 is 1.2 points, the fourth worst drop among advanced economies.”
In terms of economic performance, the survey notes that “Substantial expansion in the size and scope of government, along with new and costly regulations in areas like finance and health care, has contributed significantly to the erosion of U.S. freedom. The growth of government has been accompanied by increasing cronyism that has undermined the rule of law and perception of fairness.”
A particular burden that is worrisome is not just the high rates of taxation, but the increasingly vast array of regulations and the cost of compliance with them. Since 2009, more than 130 new regulations have been imposed, imposing an additional $60 billion expense.
Overall, America comes in at a dismal 12th place, behind Hong Kong (although that may soon change due to Beijing’s increased involvement in political affairs), Singapore, Australia, Switzerland, New Zealand, Canada, Chile, Mauritius, Ireland, Denmark, and Estonia. According to the survey the United States has experienced a dramatic decline since 2006. The principle reasons for the drop are diminished property rights, increased corruption, and higher government spending. The authors note that America is “The only country to have recorded a loss of economic freedom each of the past seven years. The overall U.S. score decline from 1995 to 2014 is 1.2 points, the fourth worst drop among advanced economies.”
In terms of economic performance, the survey notes that “Substantial expansion in the size and scope of government, along with new and costly regulations in areas like finance and health care, has contributed significantly to the erosion of U.S. freedom. The growth of government has been accompanied by increasing cronyism that has undermined the rule of law and perception of fairness.”
A particular burden that is worrisome is not just the high rates of taxation, but the increasingly vast array of regulations and the cost of compliance with them. Since 2009, more than 130 new regulations have been imposed, imposing an additional $60 billion expense.
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