« Tsunami Cost Estimated Over $15 Billion | Main | Dafur Human Rights Violations Continue to be Ignored »

Prosperity Linked to Economic Freedom

Heritage House's 2005 Index of Economic Freedom studied prosperity and economic freedom by analyzing 50 independent variables indicative of freedom in 161 countries. The greater the level of government interference in the economy and the less economic freedom a country enjoys.

Based on the index, Conservative Life observes, "There is a strong correlation between wealth and economic freedom.... The results are CLEAR. Less government = greater growth and prosperity." He also notes, "... under George W. Bush the United States is moving in the wrong direction." Heritage House explains,

Government spending, however, expands without constraints. The massive farm subsidies of 2002 were followed by the massive Medicare prescription entitlement of 2003. Increased regulatory laws in the securities field have raised compliance costs in capital markets, forcing some firms simply to buy back their stock and retreat from public markets. Anti-dumping trade barriers are growing, and inflation rose following the steep plunge in the dollar. In short, the United States, while still a vibrant country, is at a crossroads: It will either continue to be a leader in economic freedom or idly watch other countries pass it by.

Jonathan Rothenberg at BlogsforBush took note of some of the same statistics and applied them to the program for Tsunami disaster relief. He writes, "We can choose to pour ever more money down a foreign aid hole, but it will do no good unless recipient nations decide to adopt policies that will generate ecnomic growth ... the best way to eradicate poverty, disease and hunger is not to coddle and prop up corrupt dictatorships, but to vigorously promote the freedom that invariably drags prosperity along with it.

Posted by tim at January 5, 2005 2:04 AM

Articles Related to Economics: