St. Clair Today

A new study conducted by the Canada-based Fraser Institute entitled “Economic Freedom of North America" found that economic freedom is largely tied to prosperous outcomes in countries across the world, reports the Mackinac Center for Public Policy.

In the study, the degree of economic freedom was examined in the United States, Canada and Mexico by using an index that determines whether economic freedom is encouraged or discouraged. The index ranks countries in three major areas of policy, including spending and taxes, as well as labor market freedom. In addition, ten other subcomponents were utilized in the rankings. 

The index was split into two parts, one being an “all-government index” that compares different countries and provinces, which included nine U.S. states, as well as the Canadian province of Alberta. A separate index is used to make intranational comparisons, showing the state of New Hampshire as the most free in the U.S. and California the least free. Michigan ranked 31st in terms of economic freedom, followed by other Midwestern states, Illinois at 34th and Minnesota at 40th. Indiana, at 8th place, was the only Midwestern state in the top ten.

Mexican states with the most economic freedom were reportedly Jalisco, Michoacán and Baja California, while the worst included were Tabasco, Campeche and Zacatecas. According to the study, Zacatecas is one region where emigration is highest due to a lack of economic opportunities. 

Another finding of the study shows that growth in income per capita was positively correlated with economic freedom. Thus, individuals with greater levels of economic freedom tend to be more prosperous, as they have the ability to pursue their own best interest, whether that is a career, real estate investment or wider business goals to be make it into a higher income bracket. 

In its conclusion, the study said policymakers aiming to improve the living environment for their citizens should keep the study's findings in mind, as economic freedom is tightly linked to positive outcomes for people from a wide array of backgrounds. Even micro-changes to policy can reportedly make a huge difference in economic outcomes for citizens.