In response to Carl Fritsch’s question, “How can Canada have more economic freedom than the U.S.?”
For over a decade, The Wall Street Journal and The Heritage Foundation have tracked economic freedom around the world with the Index of Economic Freedom.
Since 2009 the United States has dropped behind Canada. Take a look at the figures:
| 2011 Ten Economic | Freedoms | Comparison | |
| CAN | U | .S. | |
| Business | Freedom | 96.4 | 91.0 |
| Trade | Freedom | 88.1 | 86.4 |
| Fiscal | Freedom | 78.0 | 68.3 |
| Government | Spending | 52.7 | 54.6 |
| Monetary | Freedom | 78.8 | 77.4 |
| Investment | Freedom | 75.0 | 75.0 |
| Financial | Freedom | 80.0 | 70.0 |
| Property | Rights | 90.0 | 85.0 |
| Freedom | from | Corruption 87.0 | 75.0 |
| Labor | Freedom | 81.7 | 95.7 |
Canada performs particularly well in business freedom, financial freedom, property rights, and freedom from corruption. Straightforward regulations and a competitive tax rate facilitate entrepreneurial activity and lure dynamic investment. The corporate tax rate is scheduled to decline to 15 percent in 2012.
Compare this with the burdensome top income and corporate tax rate of 35 percent here in the United States.
In addition, sound public finance management has enabled Canada’s economy to undertake stimulus measures
without undermining fiscal soundness and competitiveness.
Compare this with a recent Washington Times article reporting that Obama’s proposed 2011 budget will see the biggest one-year debt jump in history, or nearly $2 trillion, to reach $15.476 trillion by September 30, the end of the fiscal year—on track for a record federal deficit that will see the government’s overall debt surpass the size of the total U.S. economy—102.6 percent of GDP – the first time since World War II that figure has been reached.
Canada’s rich natural resources and strong manufacturing and high-technology sectors, make it one of the world’s leading free-market economies and a major exporter of oil, minerals, automobiles, manufactured goods, and forest products. Nearly 75 percent of its exports are to the United States.
Compare this with a U.S. government whose interventionist responses to the economic slowdown have eroded economic freedom and our long-term competitiveness.
As entrepreneur Nelson Davis recently put it, “We should be humbled by the fact that the economic freedom that lifted America to be the most prosperous country in the world is being systematically eroded and compromised.” When institutions protect the liberty of individuals, greater prosperity results for all.
Economist Adam Smith,
The Wealth of Nations, 1776.
Garry Gamble
Grand Marais
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