Peter Marklund

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Economic Freedom and Prosperity

I read in the editorial of Svenska Dagbladet about this years Economic Freedom of the World Report. The report creates an index for the level of economic freedom of most countries and correlates this index with the GDP. It turns out that the most free economies - USA, Hongkong, New Zealand, Great Britain - are also among the richest. Among the least free economies we find poor countries such as Burma, Kongo, and Zimbabwe.

Somewhat unsurprisingly, and according to Svenska Dagbladet, the freedom index of Sweden has been declining. The size of the public sector, tax levels and bureaucracy are given the blame for this. To end on a positive note though, it turns out that the average economic freedom index of all countries has risen significantly since both the 1970s and the mid 1990s.