Millions of people around the world are emerging from poverty thanks to rising economic freedom. But by sharp contrast, America's economic freedom has been declining over the past decade.
According to the Heritage Foundation's 2016 Index of Economic Freedom, America's economic freedom has tumbled. With losses of economic freedom in eight of the past nine years, the U.S. has tied its worst score ever, wiping out a decade of progress.
The U.S. has fallen from the sixth-freest economy in the world, when President Barack Obama took office, to 11th place in the 2016 index. America's declining score in the index is closely related to rapidly rising government spending, subsidies and bailouts.
Since early 2009:
• Government spending has exploded, amounting to $29,867 per household in 2015.
• The national debt has risen to $125,000 for every tax-filing household in America, a total over $18 trillion.
• The government takeover of health care is raising prices and disrupting markets.
• Bailouts and new government regulations have increased uncertainty, stifling investment and job creation.
Economic freedom is the foundation of U.S. economic strength, and economic strength is the foundation of America's high living standards, military power and status as a world leader. The perils of losing economic freedom are not fictional.
It is clear that our economy has been performing far below its potential, with individuals, families and entrepreneurs being squeezed by the proliferation of big-government bureaucracy and regulations.
As documented by the index and by scholars, America's economic freedom has been declining at an alarming pace. As the Wall Street Journal recently summed it up, Obama is "a champion when it comes to limiting economic freedom, and American workers have the slow growth in jobs and wages to prove it."
Not surprisingly, our economic dynamism and innovative capacity have been measurably reduced. Self-inflicted wounds include:
• The U.S. has the highest corporate tax rate in the developed world. This has driven new jobs to more competitive nations and has meant fewer jobs and lower wages for Americans.
• The overall annual cost of meeting regulatory requirements has increased by over $80 billion since 2009, with more than 180 new regulations in place. In terms of ease of starting a new business, analyzed by a recently published World Bank report, the U.S. is ranked shockingly low at 49th, trailing countries such as Canada, Georgia, Ireland, Lithuania and Malaysia.
No wonder the labor force participation rate has remained at near record lows after more than five years of steady decline.
Worse, vibrant entrepreneurial growth has been stymied by greater policy uncertainty and mounting debt. And a disturbing trend toward cronyism has gravely eroded the rule of law and distorted our free-market system.
As House Ways and Means Committee Chairman Kevin Brady (R-Texas), keynote speaker of the official release of the 2016 index, recently said: "It's been almost seven years since the Obama recovery began, and our economy is barely out of neutral. Why does America have to settle for this?"
Editorial on 02/06/2016