USA Plummets From 2nd to 16th in Economic Freedom

U.S. currency with text reading Economic Freedom

The United States, ranked second in worldwide economic freedom as recently as 2000, has plummeted to 16th, according to a new report of world economies.

The Fraser Institute’s annual report, Economic Freedom of the World, showed that the country’s drop started in 2010, the second year of the Obama administration.

To some, this may actually be a good thing. “It’s about time America stopped seeing itself as so superior.”

To others, it’s not a good thing — but it’s not so bad, either. “At least we have more security now.” But do we? Who provides and creates wealth? The private sector or the government? Obviously, all wealth originates in the private sector. The government tampers with, manipulates, redistributes or squelches wealth creation at our own peril.

For example: Socialized medicine (of which Obamacare is one version) guarantees health insurance — at a cost. The cost will be fewer doctors (particularly primary care doctors) and less access to care. “Free” or “guaranteed” health insurance inevitably means less accessible, and less accountable, doctors, hospitals and nurses, since these individuals all now work for the government, directly or indirectly.

Ditto for all the other regulations and increases in government control the Obama administration has foisted upon the economy in the last 7 years, beyond the damage of the previous administration (which is saying something).

“The United States, once considered a bastion of economic freedom, now ranks 16th in the world after being as high as second in 2000,” said the report issued Monday morning.

If you live in the United States, or had previously been considering immigrating there, are you looking for alternatives?

Consider the top 10: Hong Kong, Singapore, New Zealand, Switzerland, United Arab Emirates, Mauritius, Jordan, Ireland, Canada, with the United Kingdom and Chile tied at 10.

Prior to the last presidential election in 2012, I would have considered this news for Republicans to exploit. I’m no longer convinced that’s the case. If the state of the economy were the # 1 factor determining America’s choice of government officials, then Obama would have easily lost the last election. There must be other priorities, in most Americans’ minds. Otherwise, Obama’s reelection (leaving aside any of Mitt Romney’s flaws) simply could never have happened.

The only possible explanation? A desire for the perceived and actual short-term “benefits” that come from increased government intervention in the private economy. People preach it as, “Love for your fellow man, the common good, being your brother’s keeper;” in private, in their deep down and unacknowledged subconscious minds it translates into something akin to the fantasy-speak, “Please take care of me.”

A lot of people think that economic freedom is actually slavery, because when the government keeps its hands off the private economy, then people are left free to make lots of money, thereby “ripping me off.” Foolish, ignorant and naive mentalities — some of them even highly educated — feel and think, “The government must step in to ensure that the private sector does what it’s supposed to do, i.e. take care of me.”

Hilariously and absurdly, this is all rationalized in the name of “self-sacrifice.” Self-sacrifice for others is trumped as an ideal in the welfare-entitlement state, when in actuality it’s carried out to serve the most neurotic, childish and frightened mentalities (conventionally called “selfish”) among us.

In reality, economic freedom is the only thing that permits economies to grow at all. The freer the economy, the more things there will be on the market, the more competition there will be, the more innovation there will be, and the greater supply of goods there will be relative to the demand for them — resulting in the lowest possible prices, over time.

Capitalism and economic freedom are not only better for the profit-makers and profit-seekers. They’re also better for consumers, who have better quality and choice than they would in any other kind of economy. Put it this way: Without capitalism, there would be absolutely nothing. While government is crucial for protecting property rights and punishing violent or fraudulent offenders, beyond that it does nothing but hamper innovation, prosperity and growth. Why do you think economic growth in America has slowed and stagnated as its economic freedom ranking has plummeted?

There are basically three kinds of economies: A free market; a hampered market; and a totally controlled economy (i.e. socialism, fascism, all the rest). We’re currently a hampered market economy moving towards complete socialism. All that presently ails us gets blamed on the economic freedom we no longer have; and only complete socialism is left as the alternative to what we have now. Check out Bernie Sanders’ ideas for details; or better yet, simply read Karl Marx. Hillary Clinton does not sound much different.

The United States, for now, rides on its earlier glory and reputation brought about by economic freedom, not the complete socialism towards which we’re moving. We cannot do so forever.

We don’t really need the Fraser Institute report to tell us what most of us can plainly see: America, particularly economically, is becoming less free all the time.

Those who think this is a good thing deserve whatever develops next. The rest of us would do well to fight, in a principled and unyielding way, for a complete and total U-turn on all economic policies — and fast.

 

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