Is the U.S. really the land of the free and home of the brave? The brave, maybe--but the other, not so much.

You might be surprised to learn...it's not even close.

Most American's in the U.S. take for granted that their fore-fathers pioneered the notion of freedom for the individual, freedom of individual expression and the opportunity to live and lead their lives the way they might choose, to self-govern, and generally be free from tyranny.  And politically-speaking in the modern era of mankind that's, for the most part, true.  But the franchise Americans have in terms of economic freedom--well, that's a different story, at least the way things are today.  

Ever heard of the Economic Freedom Index?  It is a measure of economic openness, regulatory efficiency, the rule of law, and competitiveness--all monitored by the Heritage Foundation.  The basic principles of economic freedom emphasized in the Index are personal empowerment, equitable treatment, and the promotion of competition.  

So how does the U.S. stack up on such dimensions as business-, trade-, fiscal-, monetary-, investment-, financial-, and labor-freedom?  How about on the size of government, property rights, and freedom from corruption?  Well, that's were it gets interesting--and challenging to those who think that the U.S. is preeminent.

The U.S. is hardly on top.

 If you think that the U.S. is number one...think again.  If you consider all the 183 countries around the world, the U.S. is not near the bottom--it's not even in the midddle--but you shouldn't bet that it's near the top either.  Overall, on a composite index of the world's measure of economic freedom, the U.S. comes in a dismal eighth rank, behind such countries as Hong Kong, Singapore, Switzerland, Canada, Chile, Ireland, Denmark--then the United States!  Indeed, in terms of the placement of countries between the categories of "Free" versus "Mostly free" the U.S. no longer places in the most desired category; instead, it is only in the Mostly Free, behind Canada and six other countries!

The U.S. ranks a lowly tenth among other countries in investment freedom; ninth in terms of property rights or freedom from corruption!  It comes in eighth in trade freedom, monetary freedom, and financial freedom; seventh in terms of freedoms associated with business, fiscal matters, and government size.  The best rank for the U.S. is labor freedom at third.  

If you think this news is bad, get ready for this:  it's getting worse!

When one looks at the one-year changes in the Index of Economic Freedom scores for the 20 largest economies--the U.S. experienced the most substantial shift--for the worse; in other words, the economic freedoms in the U.S. are in the process of shrinking, not expanding.  

Why is this a big deal?

The Heritage people make two relevant points about all of this:

[1] The positive relationship between economic freedom and prosperity is confirmed yet again in the 2010 Index.  Gross domestic product per capita is much higher in countries that score well in the Index.  The positive relationship holds true at all levels of economic freedom but becomes even more dramatic as economic freedom increases.

[2] Economic freedom improves the overall quality of life, promotes political and social progress, and supports environmental protection.  The 2010 Index provides strong evidence that economic freedom has far-reaching positive impacts on various aspects of human development.  Economic freedom correlates with poverty reduction, a variety of desirable social indicators, democratic governance, and environmental sustainability.  

And what's the point?

The popular misconception in the U.S. is that the business sector is dubious--at best--in terms of it's meriting public respect and support; in reality it more likely represents the "engine" by which all the practical and ideal hopes and dreams--for individuals and societies alike--get realized!

If you think the U.S. is headed in the right direction to get that accomplished--at any level of aggregation--think again; that simply isn't the case.  If you are proud to live in the U.S. and you think it is the home of the brave and the land of the free, you'll need to qualify economically free in ways that are not--today at least--especially remarkable.  It's time we paid attention and took the steps called for to correct this problem!
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