The abstract arguments for economic freedom are great for those of us who, well, like abstract arguments. But sometimes, there’s no substitute for some good, solid empirical data. That’s just what economist Richard Rahn delivers in this article in the Washington Times. If you don’t have time to read the 2006 Heritage Foundation/Wall Street Journal “Index of Economic Freedom,” at least read Rahn’s summary of it.
Suppose you were appointed global economic czar, and your task was to bring the world’s per capita income up to the level of Ireland’s (almost that of the U.S.). Would you:
(A) Insist the world’s rich nations transfer substantial wealth though massive foreign aid to the poor nations?
(B) Insist all nations adopt policies that would make them as economically free as the top 10 freest economies today?
If you answered “B,” go to the head of the class. This shows you have a good understanding of both history and economic reality about what works and what doesn’t.
If you answered “A,” welcome to the Kofi Annan, Jacques Chirac, Gerhard Schroeder school of willful economic ignorance.
Strong assertions. Fortunately, the statistics that follow not only illustrate the connection between economic freedom and prosperity, but also the lack of connection between receiving foreign aid and prosperity. This is one of those statistics-packed articles that I would love to memorize, if I was any good at memorizing statistics.