Editorial: Freedom equals prosperity – Amarillo.com

The state of Texas recently ranked third in the country in the Economic Freedom of North America 2016 list, done by the Fraser Institute.

The aforementioned study ranked the 50 states based on economic freedom.

For the record, Texas came in behind New Hampshire and Florida. The Lone Star State was tied for third with South Dakota with eight points.

Here a few interesting observations from the study:

n As far as North America goes, Canada had three of the top four finishers in the Summary of Ratings for Economic Freedom at the All-Government Level, 2014, which included entities in Canada, the U.S. and Mexico. Speaking of Mexico, it did not make the list until No. 61 Jalisco and Baja California, which tied in this spot.

n As for Texas, the state did well in the three categories of government spending (second overall nationally), taxes (sixth) and labor market freedom (fourth). Texas was first in income tax rate and second in consumption spending, percentage of personal income and income and payroll tax revenue, percentage of personal income.

It is not a coincidence that Mexico would lag behind Canada and the U.S. as far as economic freedom. This is a primary reason why there are an estimated 11.3 million illegal immigrants in America, with half coming from Mexico in 2016, according to the Pew Research Center.

Interestingly, the Fraser Institute also did a study of economic freedom in the Arab world. Nations and countries such as Sudan, Iraq, Libya, Algeria and Syrian Arab Republic were near the bottom as far as economic freedom.

See the connection?

Here is how the Fraser Institute defined economic freedom: The freest economies operate with minimal government interference, relying upon personal choice and markets to answer basic economic questions such as what is to be produced, how it is to be produced, how much is produced, and for whom production is intended. As government imposes restrictions on these choices, there is less economic freedom.

Far too many times, government sticks its nose into the economy for only one reason to make money. While there are regulations and restrictions in America designed to protect the public, there are also regulations and restrictions designed to fatten government coffers. And in countries without the restrictions on government which thankfully exist in America, the goal of government inclusion in the economy is to benefit those in power pure and simple.

Read between the lines of the aforementioned report. The more freedom people have, the more prosperous the country.

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Editorial: Freedom equals prosperity - Amarillo.com