The secret to a prosperous economy actually isn’t a secret at all.
Around the world, we can see that countries with laws, regulations and cultures that respect the principles of property rights, a fair judicial system, low and predictable taxes and regulations, among a few, prosper. Countries that fail to be governed by these principles are less prosperous.
The Index of Economic Freedom, developed by our friends at The Heritage Foundation, provides a single number to understand to extent to which any country is positions its people for success through sound policy. The higher a country’s score and ranking in the Index, the more, over time, its people will prosper.
Not surprisingly, the economic basketcases of the world can be found at the low end of the index, with scores under 50. North Korea, Cuba and Venezuela round out the bottom three.
For policymakers in the United States and abroad, creating the conditions for prosperity is, literally, a matter of raising one’s score and ranking in the Index of Economic Freedom. Reduce taxes and make regulations lower and more predictable? The score goes up. Try to placate the country’s labor unions by… Read More