Declining economic freedom around the world: Index of Economic Freedom 2022

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Economic freedom is increasingly under threat in the United States and abroad, according to The Heritage Foundation’s recently released Index of Economic Freedom 2022. This year’s index reveals a global economy that, taken as a whole, remains “moderately free”. However, the global average economic freedom score is 60, a loss of 1.6 points from the 2021 score of 61.6.

“No other system – and many have been tried – comes close to free market capitalism’s record of promoting growth and empowering human flourishing. The undeniable link between economic freedom and prosperity is a striking demonstration of what people can do when given the maximum opportunity to pursue their own interests within the rule of law.However, as we are witnessing now around the world, this freedom is never guaranteed and can be gone in the blink of an eye,” said index authors Terry Miller, Anthony Kim, James Roberts and Patrick Tyrrell.

Americans are already feeling the pain of shrinking economic freedom at home. The United States also fell from 20th to 25th place in the 2022 world rankings, its lowest ranking ever, The Heritage Foundation said in a press release.

Economic freedom is increasingly under threat in the United States and abroad, according to The Heritage Foundation’s recently released Index of Economic Freedom 2022. This year’s index reveals a global economy that, taken as a whole, remains “moderately free”. However, the global average economic freedom score is 60, a loss of 1.6 points from the 2021 score of 61.6.

Despite being dragged down by a sharp drop in its fiscal health score, the Biden administration continues to press full steam ahead to implement a socialist agenda that would add trillions to the debt, raise taxes and would further centralize federal power over the economy. Meanwhile, Americans are suffering from record inflation and supply chain disruptions, the organization said.

The index’s editors attribute the decline of economic freedom around the world to one major factor: reckless policies in the face of the COVID-19 pandemic.

“Most of the economies included in the 2022 index experienced negative growth in 2020, which is not surprising given that so many measures that governments have taken in the name of protecting public health have also reduced the economic freedom. These restrictions have exacted a cost in terms of human well-being which must be added to the huge cost of the number of deaths from the disease itself,” the editors said.

Singapore retained its status as the world’s freest economy, but the top 10 countries saw a substantial shake-up. Amid severe and prolonged lockdowns, Australia dropped the “free” category for the first time since 2006, and New Zealand fell to fourth place, behind Switzerland and Ireland.

Several countries made positive gains in the index, including Taiwan, Luxembourg and Estonia, all of which jumped up the rankings to join the “free” category for the first time.

Economic freedom remained almost non-existent in China. The escalation of interventions and aggression in Hong Kong, threats against Taiwan, persecution of Uyghurs and other religious groups have led to a wide decline in trust and continue to destabilize global relations.

In 2021, Washington-based The Heritage Foundation dropped Hong Kong from the index, still at the top of the rankings.

The Heritage Foundation has led the American conservative movement since its founding in 1973.

Fibre2Fashion (DS) News Desk

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