Economic freedom is falling dramatically around the world
The decline has been widespread and dramatic. Some 146 out of 165 jurisdictions saw their scores fall from 2019 to 2020, the most recent year for which there is internationally comparable data. Some of the reasons for the decline include “massive increases in government spending, monetary expansion, travel restrictions, [and] regulatory mandates on companies. And while the report doesn’t take a position on the effectiveness of policy responses to the pandemic, it finds that the decline “wipes out a decade of improvement in the global average and is more than three times greater than the global decline seen in 2008”. /09 financial crisis. The coronavirus pandemic has undoubtedly been a disaster for economic freedom.
The US rating fell, as did its ranking, from 5e in 2019 at 7e in 2020.
It’s from Ian Vasquez,”Global economic freedom has declined sharply in the aftermath of the pandemic“, Cato to freedomSeptember 8, 2022.
Vasquez discusses Economic freedom in the world: annual report 2022published annually by the Fraser Institute in Vancouver, Canada and the Cato Institute in Washington, DC
This project, which has been going on for a few decades, is one of the most valuable data mining projects in economics. He gives us a report card every year, with a lag of about 1.5 years, on how economic freedom is doing in the majority of countries around the world.
With the aggressive measures that most governments around the world have taken to deal with the pandemic, from huge increases in government spending to travel restrictions, business closures, and more, it should come as no surprise that economic freedom has shrunk more in one year (2020) than any other year since researchers started measuring it. Of particular interest to me, given my dual nationality (Canadian/American), for a number of years recently, Canada was economically more free than the United States. For example, in 2013 (report 2015), Canada had a rating of 7.89 out of 10 and was ranked 9th in the world, ahead of the United States, which had a rating of 7.73 and 16th in the world. In 2014 (report 2016), Canada moved up, earning a rating of 7.98 and ranking 5th, while the United States, with a rating of 7.75, remained in 16th place. In 2015 (report 2017), the United States and Canada were tied at 7.94 with a ranking of 11th. In 2016 (2018 report), the United States had odds of 8.03 with a ranking of 6th while Canada was at 7.98 with a ranking of 10th.
After that, Canada never caught up with the United States, but in 2017 (report 2019) both increased in rating and ranking. The United States went to 8.19 with a ranking of 5th and Canada went to 8.08 with a ranking of 8th. It was the best ranking for both. In 2018 (2020 report), the United States fell to 6th place although its rating rose slightly to 8.22. Canada fell to 9th place, although its rating rose slightly to 8.17. They diverged even more in 2019 (report 2021), with the United States ranked 6th with odds of 8.24 and Canada ranked 14th with odds of 8.06. In 2020 (report 2022), the United States was 7th, with a score of 7.97, while Canada was 14th with a score of 7.81.
I will have more to say as I work on this year’s report and compare it to previous years.