- Chinese Death Star: The moon cited as the perfect launch pad for ballistic missiles
- Help wanted: Homeland Security plagued by vacancies at the top
- We are not amused: Queen’s protection officers warned to keep ‘sticky fingers’ off the royal cashews
- Unleash the crossbows: Gov. Scott Walker creates new hunting season
- Bubonic plague kills 20 in Madagascar
- G-20 diplomats fell for hacker attack promising nude photos of former French first lady Carla Bruni
- Minnesota guardsman charged with stealing private soldier data for fake IDs
- Florida appeals court rules universities can’t regulate guns
- Vladimir Putin defends Russian conservative values
- Tea Party Patriots call key GOP firing a declaration of war
FEULNER: Economic freedom on the wane
Limited government isn’t so limited anymore
Question of the Day
“Land of the free.” It’s right there in our national anthem. As well it should be — the personal liberties we enjoy are the envy of many around the world.
Freedom is no accident. It requires constant vigilance. It takes economic liberty, an area where the United States has begun to slip quite a bit lately.
How would you say the United States compares to other nations? There’s no need to guess. We can pinpoint it exactly by using an annual guide known as the Index of Economic Freedom.
Top three, you think? Top five? Nope. Last year at this time came the news that the United States had dropped to 10th place. Now, the 2013 index is out, and we can see that the United States hasn’t budged from that spot.
In fact, we’re lucky we didn’t fall out of the top 10 altogether. Our index score declined a bit over the last year. We held onto the No. 10 slot mostly because Ireland declined enough to wind up in 11th place.
As recently as 2008, the United States ranked seventh worldwide, had a score of 81 (on a 0 to 100 scale, with 100 being the freest), and was listed as a “free” economy. Today, the United States has a score of 76 (its lowest since 2000) and is “mostly free,” the index’s second-highest category.
Before explaining why, let’s back up and touch on how the editors of the index — published annually since 1995 by the Heritage Foundation and The Wall Street Journal — determine the scores. Each country is evaluated in four broad areas of economic freedom:
1) Rule of Law: Are property rights protected through an effective and honest judicial system? How widespread is corruption — bribery, extortion, graft and the like?
2) Limited Government: Are taxes high or low? Is government spending kept under control, or is it growing unchecked?
3) Regulatory Efficiency: Are businesses able to operate without burdensome and redundant regulations? Are individuals able to work where and how much they want? Is inflation in check? Are prices stable?
4) Open Markets: Can goods be traded freely? Are there tariffs, quota or other restrictions? Can individuals invest their money where and how they see fit? Is there an open banking environment that encourages competition?
For the most part, of course, the United States does very well on these measures. Finishing 10th out of 177 countries, after all, is impossible if you don’t have a large degree of economic freedom. Property rights are strong in the U.S. Our court system is independent. Business startup procedures are efficient. The labor market is flexible.
In certain key areas, however, the United States is lagging badly.
The biggest decline since last year comes in the area of regulations. Simply put, it’s becoming costlier and more complicated to start up or maintain a business. More than 100 major new federal regulations have been imposed since early 2009, at an annual cost that exceeds $46 billion. Small wonder we’re stuck in a “jobless recovery.”
Yet, regulatory freedom is hardly our weakest spot. Indeed, we’re above the global average in that category, and all the others — except one: limited government. In short, it’s not so limited anymore.
© Copyright 2013 The Washington Times, LLC. Click here for reprint permission.
About the Author
By Matt Kibbe
The short-term deal will assure long-term overspending
Get Breaking Alerts
- Obama's Afghanistan experts stumped on U.S. death toll, war costs during hearing
- Comma on!: Twitter erupts over Obama-Castro 'marriage'
- NAPOLITANO: A conspiracy so vast
- N. Korean news agency: Kim Jong Un's uncle executed
- All-out war breaks out in GOP over budget pact
- White House improvises again on patchy Obamacare rollout
- Biden guarantees victory on immigration reform
- Jane Fonda Foundation fails to make single contribution in 5 years: report
- Obama takes 'selfie' at Mandela's funeral service
- VEGAS RULES: Harry Reid pushed feds to change ruling for casino's big-money foreigners