Individual Liberty, Free Markets, and Peace

Economic Freedom, Investment, and Prosperity

When we allow our freedoms to be taken, they will be taken. We cannot sit in the corner and get kicked over and over. We must take a stand. Say a word. Be involved and keep our country from falling apart. Do nothing, say nothing, and be nothing.

I heard a speech by Bob McEwen whom I believe was a former "senator? don't quote me, not sure". He talked about economics and it struck a chord deep in my soul. I can see with every step towards government involvement and regulation, we take a further step from God, Freedom and Prosperity. It's the pride cycle in the scriptures. History definitely repeats itself.

by James D. Gwartney and Robert Lawson
James Gwartney is professor of
Economics at Florida State University and Robert Lawson is Professor of
Economics and George H. Moor Chair at Capital University. They are
co-authors of
"Economic Freedom of the World," an annual report published by
a network of
institutes in 58 countries, including the Cato Institute in the
United States
and the Fraser Institute in Canada.
Added to cato.org on
July 9, 2003
This
article appeared on cato.org on July 9, 2003.

Economists
know that the quality of political and economic institutions exerts a major
effect on the growth and prosperity of nations. In general, we know that the greater the economic freedom, the
greater the political freedom, and the greater the prosperity for all
involved. The good news is that economic freedom can be
measured.

The recently released "Economic Freedom of the
World" report presents an economic freedom index, which uses 38
different
components to rate 123 countries on a zero-to-ten basis.
Government expenditures
as a share of the economy, marginal tax rates,
independence of the judiciary,
tariff rates, non-tariff trade restraints,
and price stability are among the
components integrated into the index.

To get a high economic freedom
rating, a country must rely primarily
on voluntary exchange and markets rather
than taxes and government spending
to allocate goods and resources. It must also
follow stable monetary
policies, avoid regulations that limit entry into
markets, and establish a
legal regime that provides for the evenhanded
enforcement of contracts and
protection of property rights.

In the movie, "Field of Dreams," a voice called out, "If you
build it, he will come." The same might be said of economic freedom. If a
country builds institutions consistent with economic freedom, investors and
entrepreneurs will come and economic growth will result. The sooner policymakers learn this lesson, the more prosperous the people
of the world will be.