US falls off top free economies' list

[Aimster]

The United States has dropped out of the list of the world's 10 freest economies in a ranking released by the conservative Heritage Foundation.



The organisation, which promotes low taxes and limited government regulation, said on Tuesday the US was tied for 12th place with Switzerland in the 2005 Index of Economic Freedom.

Hong Kong retained its top ranking in the survey, followed by Singapore, Luxembourg and Estonia. Ireland and New Zealand tied for fifth place, followed by Britain, Denmark, Iceland and Australia in the top 10. Chile ranked 11th.

"Perhaps the greatest surprise in this year's index is the failure, for the first time, of the United States to make the top 10," the Washington-based research group said.
"Although its score remains unchanged from last year, and it is still classified as free, the United States - now in a tie for 12th place with Switzerland - has been 'treading water'," according to the editors, "and hence has been surpassed by countries willing to open their economies still further".

The report, compiled with The Wall Street Journal, "demonstrates that the countries with the greatest degrees of economic freedom also enjoy the highest living standards", Heritage said.

"During the last nine years, countries that have done the most to improve their scores on the index's 10 measures of economic freedom have, in general, experienced the highest rates of economic growth. Iceland, for example, has improved steadily, producing a compound growth rate of 3.5%."

Increased freedom

The report showed "a net increase in global economic freedom" overall in the global economy, with 86 scoring better this year than last year and 57 countries getting lower scores.

Overall, 17 countries are classified as having "free" economies, 56 as "mostly free," 70 as "mostly unfree" and 12 as "repressed".

The criteria used include free trade; taxes; government intervention in the economy; monetary policy; capital flows and foreign investment; property rights; and informal market activity.

Among European nations outside the top 10, Germany ranked 18th, Italy 26th and France 44th.

Japan, the world's second-largest economy, ranked 39th in the survey.

The Asia-Pacific region offered sharp contrasts, with the two highest-ranked economies but also the two lowest-rated countries in the world, Myanmar and North Korea.

 

[Aimster]

The report "demonstrates that the countries with the greatest degrees of economic freedom also enjoy the highest living standards"
- The Heritage Foundation

Hmm, how true do you think this is?

 

[Infohawk]

Maybe the fiscal conservatives will wake up and smell the fact that neocons don't really care about free markets (Ted Kennedy is the guy who deregulated the airlines).

 

[lozina]

Yeah I noticed this article a couple weeks ago, funny how the "LIBERAL MAINSTREAM MEDIA" never aired this story.

 

[Aimster]

Originally posted by: lozina
Yeah I noticed this article a couple weeks ago, funny how the "LIBERAL MAINSTREAM MEDIA" never aired this story.

Lol I found this on AlJazerra.

 

[Infohawk]

Originally posted by: Aimster
The report "demonstrates that the countries with the greatest degrees of economic freedom also enjoy the highest living standards"
- The Heritage Foundation

Hmm, how true do you think this is?

It makes sense. Generally free markets benefit everyone. The problem is people confuse free markets with some social-darwinist mentality many conservatives have. And as Denmark shows you can have a great social infrastructure and still be wealthy and have a free market.

 

[Centinel]

That story isnt refering to personal freedoms, but economic freedoms.

Unfortunately due to the massive upswing in regulatory law put in place by both republicans and democrats, we are far from a free market system.

Subsidies, quotas, tariffs, regulatory law, and in some cases social programs all contribute to this.

 

[Starbuck1975]

And as Denmark shows you can have a great social infrastructure and still be wealthy and have a free market.

So long as you are willing to pay the taxes necessary to support said infrastructure...what many of these nations dont have to contend with is the bloated bureacracy that both parties have imposed on our society, which makes us very inefficient at utilizing the taxes we do collect...not to mention that many Americans simply will not support efforts to develop this infrastructure as it requires short term compromises and sacrifices to provide for a better long term bottom line.

 

[Steeplerot]

Originally posted by: Aimster

Originally posted by: lozina
Yeah I noticed this article a couple weeks ago, funny how the "LIBERAL MAINSTREAM MEDIA" never aired this story.

Lol I found this on AlJazerra.

Economic freedom slippage (Washington Times)

 

[Infohawk]

How often does Heritage do this study?

 

[3chordcharlie]

Originally posted by: Infohawk
How often does Heritage do this study?

I assume once a year, since "[America's] score remains unchanged from last year"

 

[Infohawk]

Originally posted by: 3chordcharlie

Originally posted by: Infohawk
How often does Heritage do this study?

I assume once a year, since "[America's] score remains unchanged from last year"

I guess Shrub isn't doing much to foster a free market then... just a crony market?

 

[ReiAyanami]

How odd, didn't Bush give like a ton of tax cuts?

don't mind that it enslaves our children to twice the debt. what do you mean double deficits aren't good for the economy?

The criteria used include... capital flows and foreign investment

Bush's solution: more tax cuts

 

[dmcowen674]

Originally posted by: Aimster
Topic Title: US falls off top free economies' list
Topic Summary: Dropped out of the list of the world's 10 freest economies

All right on RRR FLL schedule. A system that benefits the rich at the expense of all others.

Everyone is clearly happy that the U.S. is falling off the top of so many lists.

Straight to the bottom is the American Montra, gotta love it.

 

[Stunt]

Somebody have a link to the list?
I'm sure there are other nationalities here that would find the report interesting.

 

[freegeeks]

Originally posted by: Stunt
Somebody have a link to the list?
I'm sure there are other nationalities here that would find the report interesting.

http://www.heritage.org/resear...es/index/countries.cfm

with extensive information about each country

 

[Dissipate]

Originally posted by: Aimster
The report "demonstrates that the countries with the greatest degrees of economic freedom also enjoy the highest living standards"
- The Heritage Foundation

Hmm, how true do you think this is?

Not true at all

 

[lozina]

Originally posted by: Dissipate

Originally posted by: Aimster
The report "demonstrates that the countries with the greatest degrees of economic freedom also enjoy the highest living standards"
- The Heritage Foundation

Hmm, how true do you think this is?

Not true at all

LOL good link, this index truly is a joke

 

[Stunt]

why do you get a higher score for more inflation??

edit nm...lower is better

 

[Stunt]

Also from same link...you call Canada fiscally liberal :

Under these two prime ministers, the government has balanced its budget for seven straight years, largely through decreases in federal spending. The rate of government debt has shrunk from 64 percent of GDP in 1993 to 40 percent in 2003.

...

Canada?s top income tax rate is 29 percent. Its top corporate tax rate is 22.1 percent, down from the 24.12 percent reported in the 2004 Index. Government expenditures as a share of GDP decreased less in 2003 (down 0.5 percentage point to 40.1 percent) than they did in the previous year (1.1 percentage point). On net, Canada?s fiscal burden of government score is 0.2 point better this year.

The United States? top federal income tax rate is 35 percent. The top corporate tax rate is 35 percent. Government expenditures as a share of GDP increased less in 2003 (0.4 percentage point to 35.9 percent) than they did in 2002 (0.7 percentage point). On net, the United States? fiscal burden of government score is unchanged this year.

edit: fixed for COW

 

[CanOWorms]

Originally posted by: Stunt
Also from same link...you call Canada fiscally liberal :

Under these two prime ministers, the government has balanced its budget for seven straight years, largely through decreases in federal spending. The rate of government debt has shrunk from 64 percent of GDP in 1993 to 40 percent in 2003.

Canada?s top income tax rate is 29 percent. Its top corporate tax rate is 22.1 percent, down from the 24.12 percent reported in the 2004 Index. Government expenditures as a share of GDP decreased less in 2003 (down 0.5 percentage point to 40.1 percent) than they did in the previous year (1.1 percentage point). On net, Canada?s fiscal burden of government score is 0.2 point better this year.

The United States? top federal income tax rate is 35 percent. The top corporate tax rate is 35 percent. Government expenditures as a share of GDP increased less in 2003 (0.4 percentage point to 35.9 percent) than they did in 2002 (0.7 percentage point). On net, the United States? fiscal burden of government score is unchanged this year.

I thought that they actually added that part of the US on Canada's section (it looks that way from your post). I was thinking that they must have added it there since it's what the Canadians would want since they have to bring up the US in everything