How does economic freedom vary by state?
New report on fiscal liberties
- Duration 2:54
- Date Nov 28, 2012
New report on fiscal liberties
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You may be -- just not as free as -- think that's according to a new report on fiscal liberty which outlines the degree to which each state in the union is free to engage in economic activity.
Benjamin Powell he's an associate professor how.
It's at Suffolk university and a senior fellow with the Independent Institute joins us live today from Boston -- -- -- -- A good one -- could be written if it's great to have you if we get people in all fifty states -- -- right now what's what's the good news for the people of the United States.
The good news -- in coming out of this report Steve the -- this report.
What it shows is that over the last five years.
Economic freedom and in the fifty states has declined by nearly a half a point which translates into real standard of love living -- -- You can refine about a one point increase in in this -- is associated with about a thirteen thousand dollar per person.
Increase in incomes we're talking about real losses about.
7000 dollars per person close to it in terms of the decline in economic freedom that we've seen over the last five years but we've got.
We've got a map that's gonna show the states with the highest economic freedom.
And employees say the states with the highest economic freedom are Delaware Texas Nevada.
Wyoming Colorado South Dakota Illinois Georgia Nebraska and you taught as well as we add them.
What are they doing right.
So the main thing that that this index measures is.
The size of government and taxation.
And then labor market regulation in the states in those states are having a smaller government that puts us smaller tax burden on people.
Then the dogs at the bottom of the index -- in New Mexico the West Virginia the Mississippi's of the United States.
And and the result -- those states tend to be richer on average.
Then the states that regulate economic freedom away more okay and you mentioned the states with the lowest economic freedom we -- as -- put that map up.
As well you touched on a couple of them just a moment ago that the bad news for the people the United States is it looks like Canada.
Is eclipsing us in this isn't that the case.
Yet people tend to associate the United States -- being one of the freer nations of the world but this is something that's been changing in particular over the -- last ten years and which perspective -- I mean it's always been a case of kind of the tallest dwarf.
In in an absolute level we could be a heck of a lot freedom we always have and but.
Our relative relative to the rest of the nations in the world over the last ten years we've been declining rapidly.
The United States went from the second freest nation in the world.
Economically that is in in 2000.
The dropping to sixteenth in the world rankings right now.
And behind -- this year we look at the average US state it's now actually less free than the average Canadian province.
Interest and stuff aren't professor thank you are much per share in the kind of bad news kind of good news with us this morning.
Grace good morning -- yeah art have been have been thank you sir.