How economic freedom benefits people
Does greater economic freedom lead to prosperity and a higher quality of life for people? The answer is yes, and a new map from the Fraser Institute demonstrates why.
The Institute ranked each country in the world by the level of economic freedom within that country, taking into account how free people are to trade with others, compete in markets, buy what they want, earn a living in a job they choose, keep what they earn, and own things privately. Not surprisingly, the United States, Canada, Australia and all of Western Europe ranked in the highest category ("mostly free").
Interestingly, the Institute then compared the level of economic freedom in countries to quality of life issues such as life expectancy at birth, annual growth in real income, etc. They found that life expectancy at birth was highest for those born in countries with high levels of economic freedom (77.8 years), compared to those in economically unfree countries (55.0 years).
Concurrently, income growth was highest in economically free countries (2.1% on average), compared to negative income growth in those which are unfree.
The lesson is clear: if you want your people to live longer, and live better, then pursue policies allowing people to trade freely, keep most of what they earn, choose their own job, and protect their property rights.
The Institute ranked each country in the world by the level of economic freedom within that country, taking into account how free people are to trade with others, compete in markets, buy what they want, earn a living in a job they choose, keep what they earn, and own things privately. Not surprisingly, the United States, Canada, Australia and all of Western Europe ranked in the highest category ("mostly free").
Interestingly, the Institute then compared the level of economic freedom in countries to quality of life issues such as life expectancy at birth, annual growth in real income, etc. They found that life expectancy at birth was highest for those born in countries with high levels of economic freedom (77.8 years), compared to those in economically unfree countries (55.0 years).
Concurrently, income growth was highest in economically free countries (2.1% on average), compared to negative income growth in those which are unfree.
The lesson is clear: if you want your people to live longer, and live better, then pursue policies allowing people to trade freely, keep most of what they earn, choose their own job, and protect their property rights.
posted by Ron Nehring at
10:13 AM
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