US ranks 12th in economic freedom – report

Reuters/Shannon Stapleton

Reuters/Shannon Stapleton

The United States has ranked 12th in the world in economic freedom, according to an annual report compiled by the Heritage Foundation. The country remained out of the top 10, despite small improvements to its score.

The Heritage Foundation, a conservative think-tank, uses four
categories to rank countries in its Economic Freedom Index – rule
of law, limited government, regulatory efficiency, and open
markets. The United States finally halted its five-year slide in
the rankings by rising 0.7 points, retaining its No. 12 ranking
among the world’s economies.

According to the report, the US improved its scoring in
categories such as freedom from corruption, government spending,
fiscal freedom, labor freedom, monetary freedom, and trade
freedom.

The United States recorded modest gains in six of the 10
Index-measured freedoms, including control of government
spending. But its tax and regulatory burdens have increased
substantially, and it still has much work to do (in the area of
business freedom, for example, which worsened last year) before
it can regain a spot among the world’s 10 freest economies,

said the report.

Screenshot from www.heritage.org

Rep. Paul Ryan (R-Wis.) spoke at the Heritage Foundation on
Tuesday, unveiling the index. He said the improved score in
government spending was due to Republicans’ influence in
Congress.

The fact that our country received an uptick in our rating
this year, and one of the reasons why we would see this uptick is
because since we took over the House in 2011, we started cutting
spending
,” Ryan said.

“We started capping the kind that Congress is control of on
an annual basis, discretionary spending, and so I think it’s
noteworthy that because of a new Republican Congress that took
over in 2011, we brought some temper to the out of control
spending that was happening here in Washington and as a result,
it made us more free
,” he added. “That’s a good step in
the right direction with many, many steps to follow.”

READ MORE: ‘National
moral disgrace’: Over 1 in 5 US children on food stamps &
living in poverty

The report also noted that when President Barack Obama took
office in 2009, the United States ranked sixth in economic
freedom, falling to 12th place over the course of his presidency.
The report suggests that White House domestic policies are to
blame, though it makes scant mention of the 2008 economic crisis
that led to the great recession and the loss of 10 million
full-time jobs.

The anemic post-recession recovery has been characterized by
slow growth, high unemployment, a decrease in the number of
Americans seeking work, and great uncertainty that has held back
investment,”
explains the report. “Increased tax
regulatory burdens, aggravated by favoritism toward entrenched
interests, have undercut America’s historically dynamic
entrepreneurial growth.

READ MORE: Food stamp usage
has quadrupled among US service members since ‘06

Leading the chart this year are Hong Kong, Singapore, and New
Zealand. Hong Kong’s overall rating declined by 0.5 points over a
higher level of perceived corruption,” which trumped
improvements in other categories. Last year, Hong Kong was the
focus of a mass civilian protest against voting restrictions
after Beijing announced it would vet candidates for the office of
chief executive.


Source Article from http://rt.com/usa/227247-us-economic-freedom-ranking/

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