All countries were rated on Prosperity, Security and Freedom and Australia received a huge F for FAIL, as reported by Alan Austin.
The Heritage Foundation is a conservative American think tank that supports far-right causes and conspiracy theory candidates for political office. He has a history of opposition to workers’ rights and progressive causes.
The author and Independent Australia editors do not endorse the Heritage Foundation.
The point of this article – which the author argues could have been explained more explicitly – is that even a hard-right, pro-big business, anti-worker American political organization recognized these two important realities:
1. During their six full years in office, Australia’s Rudd and Gillard governments have enjoyed the most economic freedom in the OECD and third in the world.
2. After eight years of coalition, Australia’s ranking has fallen to tenth in the OECD and 12th in the world.
Globally, virtually all the compilers of comparative tables ranked the Australian Labor governments at the top and the Coalition governments well down the rankings. Heritage is simply the latest to do so. We think it is useful for Australians to know this.
AFTER THREE YEARS of incompetent and lazy mismanagement by Prime Minister Scott Morrison and Treasurer Josh Frydenberg, Australia’s global score on economic freedom has plummeted to an all-time low. This adds yet another item to the list of “worst ever” outcomes slashed by this inept administration. This list is now well over 50.
Australia is no longer a world leader
The Washington-based think tank Heritage Foundation released its 2022 Index of Economic Freedom last week, scoring 177 nations on 12 quantitative and qualitative factors. Australia got the shameful score of 77.7 points out of a possible 100.
Australia ranked first in the Organization for Economic Co-operation and Development (OECD) and third in the world from 2009 to 2013. Only the small, dynamic economies of Asia, Hong Kong and Singapore, fared better than Australia during this difficult period of the global financial crisis.
Australia held on to third place in the world in 2014, then fell to fourth place in 2015, then to fifth from 2016 to 2019. Now that Morrison and Frydenberg are in charge, Australia’s economic freedom has collapsed to 12th place. This is the lowest for 28 years since the publication of this index.
The index of economic freedom
According to the report:
“Economic freedom is the fundamental right of every human being to control their work and their property. In an economically free society, individuals are free to work, produce, consume and invest as they see fit.
Ideals of economic freedom are strongly associated with healthier societies, cleaner environments, greater wealth per capita, human development, democracy, and the eradication of poverty.
Extend the sordid tapestry of blows
The harsh ruling confirms Transparency International’s findings last month that Australia now has the lowest corruption score ever. This echoes the Economist Intelligence Unit’s assessment that Australia has now fallen to its worst record on democracy and civil liberties.
This reinforces recent very negative comments from the OECD on the deterioration of the economy. Its report last April revealed that the GDP per inhabitant is 9% lower than that of the best performing countries in the OECD, productivity is 15% lower than that of the best performing countries and inequality is higher than in most advanced economies.
This supports the World Bank’s findings that Australia is at historic lows in debt and deficits. And he backs up the reports here at IA and elsewhere that Frydenberg is the worst treasurer Australia has had. Based on measurable results, his immediate predecessor, Morrison, was second worst.
The results signal that the next Independent AThe US Economic Management (IAREM) ranking of all world economies will see Australia drastically lower than the dismal 23rd in the world it reached last November. This is down from the best ranking from 2009 to 2013.
Taken together, all of these negative reviews send a clear message: the current government in Australia, virtually alone in the developed world, is delivering results that are steadily deteriorating with each passing year.
The ten best nations for 2022
In order, the winners on economic freedom, with scores out of 100, were:
- Singapore — 84.4
- Switzerland — 84.2
- Ireland — 82.0
- New Zealand — 80.6
- Taiwan — 80.1
- Estonia — 80.0
- Netherlands — 79.5
- Finland — 78.3
- Denmark — 78.0
Among developed OECD members, Australia was one of the three biggest losers over the past year, falling 4.7 points to 77.7. The only worst performers were the UK, down 5.7 points to 72.7 and Israel, down 5.8 points to 68.0. All three countries have clumsy right-wing governments that struggle to keep the economy functioning and are plagued by scandals.
Areas of major failure
The index is made up of 12 separate components, grouped under four headings: Rule of Law, Size of Government, Regulatory Effectiveness and Open Markets.
Australia has performed well on judicial efficiency, property rights, commercial freedom and financial freedom. Scores were fair to medium for business freedom, investment freedom, and monetary freedom. Poor results were recorded in terms of the tax burden, public expenditure, fiscal health and government integrity.
Like IA comprehensively reported, under the Morrison government the tax burden on Australians has reached the second highest on record (after the Howard government), government spending is at an all time high, debt and deficits are the worst since the World War II and corruption is rampant.
The report explains that:
“Australia is one of the wealthiest nations in Asia-Pacific and has experienced more than two decades of economic expansion.
Australia’s abundant and diverse natural resources attract high levels of foreign investment and include significant and exportable reserves of coal, iron, copper, gold, natural gas, uranium and mineral springs. renewable energy.
This implies that there is no excuse for Australia to record increasingly poor scores on this index or any of the other assessments where results have deteriorated year on year since 2014.
We can imagine Washington’s boffins scratching their heads in bewilderment – “Why are these people putting up with this spiraling incompetence? They once ruled the world!
Alan Austin is an Australian freelance columnist and freelance journalist. You can follow him on Twitter @alanaustin001.
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