Economic Freedom and Well-being

Hong Kong is at the top of the class in economic freedom and among the most prosperous in the world. Just note the change between 1980 and 2017: 255 percent increase in GDP per capita on PPP basis. Singapore, thanks to Lee Kuan Yew, did even better: #2 in economic freedom ranking, its GDP pc increased over 3x. Here’s a graphic illustration of the correlation between economic freedom and prosperity. The causal link is from freedom to prosperity.

Venezuela, much beloved of socialists like Bernie Sanders, went from moderately well-off to desperate poverty in the same period thanks to socialism. I note in passing that India was declared a socialist country by Indira Gandhi, and it shows.

Click on the image above to get to the Washington Times article by Richard W. Rahn. Quote from the article:

Socialism elevates the “collective” over the individual, which by definition requires destroying individual liberty. Under socialism, the individual is usually required to hand over (by force if necessary) an ever-increasing share of his or her work product to the state or its agents. Individual action, including speech and belief, is restricted anyplace it runs afoul of the state-sanctioned collectives.

It’s all karma, neh?

Author: Atanu Dey

Economist.

5 thoughts on “Economic Freedom and Well-being”

  1. I was looking at the full report and the data tables. https://www.fraserinstitute.org/sites/default/files/economic-freedom-of-the-world-2019.pdf

    It’s rather difficult to get a better sense of the scoring and metrics. What blows my mind is a ranking of India at 59 in 1980, to 79 now? I know rankings are relative, so it can mean way more countries were messed up and repressed in 1980. But I doubt it, given the socialist shithole India was in 1980.

    A good metaphor to understand Indian economic freedom is the growing and sale of sandalwood. Stupid restrictions created by the barbarian Tipu Sultan. Continued by the British. Perfected by “independent” India. A stunted population in every way.

    Like

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