The Economic Freedom of the World reports is a 20 year old project supported by Nobel-prize winning economi...
The Economic Freedom of the World reports is a 20 year old project supported by Nobel-prize winning economist Milton Friedman and the Fraser and Cato Institutes. The annual report measures economic freedom in 123 countries of the world. 38 objective measures of economic freedom are used including: the size of government relative to the economy, protections for private property rights, the soundness of the country's money, the extent of trade regulation and tariffs, the level of taxation and the extent of regulation of business, labor and capital markets.
Each of the 123 countries is ranked from most to least economically free. There is not enough information to include some countries, including Cuba and North Korea. The complete report can be seen at www.freetheworld****.
The report shows a direct link between economic freedom and a country's wealth. Countries that adopt capitalism, that is, countries with sound money, private property, free trade, low taxes and less regulation of business tend to be very wealthy. Countries that adopt socialism, whether of the socialist, fascist or communist variety, that is countries with governments that own or control the farms, factories, shops and banks, tend to be very poor.
If you are lucky enough to live in one of the 25 most capitalistic countries, your average annual income is over $26,000, you can expect to live almost to the age of 76 and there is less than a one percent chance that your child will die in infancy. If you are unlucky enough to live in one of the 25 most socialistic countries, your average annual income of about $2800, you can expect to die before you are 54 years old and your child has over an 8% chance of dying in infancy.
The Economic Freedom of the World report found that the poorest 10% in the 25 most capitalistic nations had incomes of about $6900 per year. The poorest 10% in the 25 most socialistic nations had incomes of about $800 per year. Good luck feeding your family on $800 per year. And notice this amazing fact: The poorest 10% in the capitalist countries had incomes over 240% greater than the average incomes in the socialist countries.