Economic freedom continues to recede in the United States, according to The Heritage Foundation’s 2013 Index of Economic Freedom. This was the fourth straight year of decline for the 10th-ranked United States, reflecting increased government regulation and spending.

The Index, produced in collaboration with The Wall Street Journal, reports that Hong Kong is again the world’s freest economy. And the United States, which ranks only as a “mostly free” economy, lags behind countries like Canada and Australia.

What’s behind the fall? Heritage economist Terry Miller explains: Continue Reading »

There has been no boost in trade freedom over the last year, according to the forthcoming 2013 Index of Economic Freedom.

The global level of economic freedom rose steadily for 15 years, according to the Index, which Heritage publishes annually with the Wall Street Journal. Since 2011, however, economic freedom has stalled at a score of 74.5 out of 100. The United States recently fell from the ranks of free countries and is now classified as “mostly free.”

The Heritage Foundation’s Bryan Riley and Ambassador Terry Miller explain that increased economic freedom improves prosperity. Continue Reading »

Last week the leaders of the G8 nations were hosted at Camp David for the 38^th annual G8 summit.

This powerful gathering focused on four major issues, tackling world hunger, the Eurozone crisis, Afghanistan and missile defense.

President Obama stressed the importance of international aid to Africa and has pledged billions of dollars in efforts to improve food security and eradicate poverty. But monetary aid is not the best solution,  support of nation’s economic freedom  provides citizens the opportunity to provide for themselves and improve their individual life station.

Heritage’s Terry Miller explains the complexity of the issue,

Food insecurity, an unfortunate home-grown affair in many African countries, is a complex issue that more aid money alone cannot resolve. In its first Africa Human Development Report titled Towards a Food Secure Future, the United Nations Development Program points out.

The President’s agenda, heavy on aid, is likely to generate more dependency rather than security. A more credible strategy to advance agricultural development and enhance Africa’s food security would encourage market development, trade, and greater economic freedom instead.

Continue Reading »

Photo: Flickr/msun523

Opponents of free trade–including those who opposed to the important trade deals that passed last week–often argue that “unfair” foreign competition has the potential to harm local businesses and destroy jobs.

But a new Heritage Foundation study reveals a very different picture. Heritage’s Bryan Riley and Terry Miller illustrate the benefits of free trade:

Special interest groups often complain that “unfair” foreign competition destroys jobs, but countries with the highest trade barriers have nearly twice the unemployment rate of countries with the most trade freedom. In the United States, the trade deficit and the unemployment rate usually have an inverse relationship. When the trade deficit increases, the unemployment rate decreases, and vice versa. For example, in 2009, the U.S. trade deficit shrank by 46 percent, and the unemployment rate increased by 60 percent.

The report also notes that trade opponents claim free trade agreements only benefit the rich and corporations. But this ignores the fact that poverty rates are lower in countries with low trade barriers–meaning everyone benefits from access to goods from abroad.

In the face of America’s massive deficit, the government should not sacrifice the potential for economic growth through tariffs and trade regulations. Jobs will be generated, but only if the market is fueled by the freedom and opportunity that free trade provides.

What do you think? Should America engage in more free trade?

At 5:00 p.m. on Fox Business Network’s “Willis Report,” Center for International Trade and Economics Director and Mark A. Kolokotrones Fellow Terry Miller will discuss the current turmoil in the global markets and the lack of leadership on needed reforms.

Later, at 7:10 p.m. on FBN’s “Lou Dobbs Tonight,” national security expert James Carafano will discuss security concerns as the result of the London riots.

At 10:00 a.m. Eastern on Reuters Television, Center for International Trade and Economics Director Terry Miller will discuss the impact of IMF corruption on the European economy.

At 11:00 a.m. on MSNBC, Senior Fellow Jim Phillips will discuss U.S. foreign policy with regards to the Middle East and Israeli Prime Minister Benyamin Netanyahu’s visit.

At 3:00 p.m. on Wall Street Business Network’s “Market Warp,” economist JD Foster will discuss Heritage’s budget plan, Saving the American Dream.

A half hour later on the same program, Asia expert Derek Scissors will discuss his recent report on the Chinese and American economies.

Terry Miller

At 5:00 p.m. Eastern on Fox Business Network’s “The Willis Report,” Heritage economist Terry Miller will discuss the economic ramifications of the crisis in Japan.

Today at 6:30 p.m. on CBS’ “Evening News,” Asia expert Bruce Klingner will discuss the nuclear explosions and the shortage of potassium iodide in Japan as well as Japan’s reticence to ask for international assistance.

Later, at 7:30 p.m. on Fox Business Network’s “Lou Dobbs Tonight,” Margaret Thatcher Center for Freedom Director Nile Gardiner will discuss Libya and the unrest in the Middle East.

Earlier today on Fox Business Network, research fellow Derek Scissors discussed the economic ramifications of the crisis in Japan.

Peter Brookes

Foreign policy expert Peter Brookes will discuss the situation in Egypt at 7:40 Eastern this morning on CNN’s “American Morning.” Keep up with all the latest and read our research and analysis on Egypt on Heritage.org.

Update: At 11:50 a.m. on Fox News’ “Happening Now,” Brookes will discuss Mubarak stepping down from office in Egypt.

James Carafano will also discuss Mubarak at 4:10 p.m. on Bloomberg Television.

Nile Gardiner will discuss the same at 5:00 p.m. on Fox Business Network’s “The Willis Report.”

And at 7:10 p.m. on Fox Business Network’s “America’s Nightly Scoreboard,” Heritage’s Terry Miller will discuss the economic implications of Mubarak stepping down from his position in Egypt and the necessary tie between economic freedom and democracy.

[Updated at 11:45 a.m., 12:05 p.m. and 1:45 p.m.]

In this week’s Heritage in Focus podcast, Ambassador Terry Millerand policy expert Bill Beach discuss the release of the 2011 Heritage Foundation/Wall Street Journal Index of Economic Freedom. Click here to listen.

David Weinberger hosts.

To get regular updates on Heritage in Focus podcasts, visit our RSS feed or subscribe on iTunes.

America's economic freedom score over time

For the second year in a row, America’s economy has grown less free, according to a new analysis from The Heritage Foundation. The 2011 Index of Economic Freedom finds that America’s economy is now the ninth-freest, behind countries such as Australia, Canada and Denmark.

Why did America decline? The authors in Heritage’s Center for International Trade and Economics explain: Continue Reading »