At No. 9 and dropping:
We're No. 9, we're No. 9!" isn't exactly a cheer that would resonate through sports stadiums in this country. But that's where the United States stands on the 2011 Index of Economic Freedom, released Wednesday by the Heritage Foundation and The Wall Street Journal.
The index indicates countries' commitment to the free enterprise/capitalist system by measuring 10 categories of economic freedom: fiscal soundness and openness to trade and investment, government size, business and labor regulation, property rights, corruption, monetary stability and financial competition.
[. . .]
The U.S. dropped to ninth place in the 2011 Index, with its lowest economic freedom score in a decade, and the U.K. fell all the way to 16th place. Those who fear we are losing economic vitality and leadership to Asia have cause for concern.”
That's because Hong Kong, Singapore, Australia, and New Zealand rule the top of the economic freedom ratings. Economic growth rates in those countries averaged 6.8 percent in 2010.
The more economic freedom, the more growth. The more growth, the less poverty. We use to know that here.
Comments
Leo - The really sad thing about this is that the innovations in international business acumen was largely developed in the good-old-USA- For example, the principles of the correction of quality problems using statistical analysis was developed by engineers at Western Electric back in the late 1920's & early 1930's - was used during the Second World War - enabling the allies to overcome The Axis - then was set aside due to the world buying anything we made no matter what the quality - until the principles of this science were taken to Japan and then being responsible for the Japanesse Industrial Miracle! We had to be "taught" how to build reliable automobiles by our own engineers - only via a detour through the Far East.
John, The auto industry used to fight unions and did so up till the 60's. But then they finally gave in and stopped fighting the unions and instead passed the cost onto customers. Early contracts prohibited non union workers who supplied parts; contracts required the payment to workers laid off; contracts limited automated production if jobs were eliminated.
If you want to place blame as to why the auto industry failed in the US, you can place a lot on unions which tied companies hands by making it too costly to innovate production lines. You can also blame companies for giving into unions so easily.
The both got what they deserved, but we the taxpayer were just plain stupid to bail them out. ROI will be negative.
Gentlmen:
Excellent points made...!
Stossel had a show a few weeks back that showed how EASY it was to start a small company in HONG KONG as opposed to the USA...
(yeah, we USED to do THAT here)