According to the 2016 Index of Economic Freedom, an annual publication by The Heritage Foundation, America's economic freedom has tumbled. With losses of economic freedom in eight of the past nine years, the U.S. has tied its worst score ever, wiping out a decade of progress.
The U.S. has fallen from the 6th freest economy in the world, when President Barack Obama took office, to 11th place in 2016. America's declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts.
Since early 2009:
- Government spending has exploded, amounting to $29,867 per household in 2015.
- The national debt has risen to $125,000 for every tax-filing household in Americaโa total over $18 trillion.
- The government takeover of health care is raising prices and disrupting markets.
- Bailouts and new government regulations have increased uncertainty, stifling investment and job creation.
Comment: Other culprits: Wall Street, the banksters, corporate greed, the MIC, the Federal Reserve, Congress and the currency upheavals...to name just a few.
It is painfully clear that our economy has been performing far below its potential, with individuals, families, and entrepreneurs being squeezed by the proliferation of big-government bureaucracy and regulations. As documented by the index, and by other scholars, America's economic freedom has been declining at an alarming pace.
Indeed, as The Wall Street Journal recently summed it up succinctly, Obama is "a champion when it comes to limiting economic freedom, and American workers have the slow growth in jobs and wages to prove it."
Not surprisingly, our economic dynamism and innovative capacity have been measurably reduced. Self-inflicted wounds include:
- The U.S. has the highest corporate tax rate in the developed world. This has driven new jobs to other, more competitive nations and has meant fewer jobs and lower wages for Americans.
- The overall annual cost of meeting regulatory requirements has increased by over $80 billion since 2009, with more than 180 new regulations in place. In terms of ease of starting a new business, analyzed by a recently published World Bank report, the U.S. is ranked shockingly low at 49th, trailing countries such as Canada, Georgia, Ireland, Lithuania, and Malaysia.
House Ways and Means Committee Chairman Kevin Brady, R-Texas, keynote speaker of the official release of the 2016 Index, recently stated:
It's been almost seven years since the Obama "recovery" began, and our economy is barely out of neutral. Why does America have to settle for this?Restoring economic freedom is prerequisite to revitalizing and brightening America's future. 2016 is the year to reaffirm the principles of limited government, free enterprise, and rule of law so that we can reconstitute an America where freedom, opportunity, and prosperity flourish.
The time to act is now.
Anthony B. Kim researches international economic issues at The Heritage Foundation, with a strong focus on economic freedom. Kim is the research manager of the Index of Economic Freedom, the flagship product of the Heritage Foundation in partnership with The Wall Street Journal.
Comment: The Heritage Foundation is an ultra-conservative right wing think tank, that boasts its significant influence in the G.W.Bush administration financial fiasco. Heritage and the Wall Street Journal are intimately connected to Economic Freedom, an organization from which the bulk of research of the 2016 index data was derived, upon which this article is based and whose author was the source. Almost all the article links go back to the Heritage Foundation in some manner or form, including the multimedia news organization and web site The Daily Signal. The Fraser Institute (Canada's top think tank) also utilizes information/data from Economic Freedom and Wall Street Journal headlines but is listed as an independent and trustworthy resource (other scholars).
Economic Freedom...are we even clear what this meme means? The Charles Koch Institute has a page on this concept (in which it mentions The Fraser Institute and the Heritage Foundation...who woulda thought!). Even Investopedia refers this index concept to "the Heritage Foundation in conjunction with the Wall Street Journal." Can we just say Economic Freedom means unrestricted Big Business disguised in concern for the little guy?
There is a mutiplicity of factors to consider for accurate and objective financial analysis. We must look carefully for truth when the information sources are so calculatedly constricted to lead back to a fundamental bias and a particular political point of view under the guise of independent research, certifiable financials, and honest representation. If you create it and feed it, you can make it say whatever you want.