Americans love to win, especially when it comes to proving we’re freer than the citizens of other countries. But we continue to lose when it comes to our economic freedom ranking.
According to the annual rankings from the Fraser Institute in Canada, the U.S. ranks 16th in the world for economic freedom. That puts the country behind Canada, the United Arab Emirates and the United Kingdom, among others.
President Obama has overseen much of the recent decline. In 2008, the U.S. was ranked seventh in the world with an economic freedom score of 8.1 out of 10. The latest rankings use 2014 data and show the country’s economic freedom score has declined to 7.8.
Much of the decline since 2008 comes under the “sound money” component, emphasizing the importance of consistent monetary policy and long-term price stability. Largely because of annual growth in the country’s money supply, the U.S.’s sound money score has dropped from 9.7 in 2008, second-best in the world, to 9.4 in 2014, 39th in the world.
The worst part of the country’s economic freedom score, though, comes from the size of the federal government. In that area, the U.S.’s score has declined from 6.9 in 2008, 49th-best in the world, to 6.4 in 2014, 57th-best.
The good news is that the world’s average level of economic freedom has grown steadily over time. Average economic freedom was 5.3 in 1980. It’s since risen to 6.86.
Worldwide, the countries with the most economic freedom tend to have the highest per capita incomes and longer life expectancies. The amount of income held by the poorest 10 percent of the population doesn’t change much depending on economic freedom in a given country. But in countries with more economic freedom, the poorest 10 percent of their populations have much higher incomes.
Hong Kong has the highest economic freedom rating in the world, at nine out of 10. It’s followed by Singapore, New Zealand, Switzerland and Canada to round out the top five.
Of the 159 countries included, the Republic of Congo and Libya have some of the worst economic freedom ratings, with Venezuela coming last. North Korea was not included.
Jason Russell is a commentary writer for the Washington Examiner.
