Daniel J. Mitchell
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Back in February, I said Australia probably was the country most likely to survive and prosper as much of the world suffered fiscal collapse and social chaos.

In hindsight, I probably should have mentioned Canada as an option, in part because of pro-growth reforms in the past two decades that have significantly reduced the burden of government spending.

And I’ve already acknowledged that Canada has passed the United States in the Economic Freedom of the World rankings.

So I guess I shouldn’t be too surprised to learn that the most economically free state in North America isn’t a state. It’s a Canadian province. Here’s a map froma new report showing how sub-national jurisdictions rate for economic freedom.

Economic Freedom NA Map

And here’s the ranking for economic freedom in states and provinces. As you can see, Alberta and Saskatchewan are in the top two spots, followed by the American states of Delaware, Texas, and Nevada.

Interestingly, Canadian provinces also held the bottom two slots, with Prince Edward Island being last and Nova Scotia second to last. The worst American states are New Mexico, West Virginia, and Mississippi.

Economic Freedom North America

But the previous table looks at the combined impact of national and sub-national government policies.

If you look at the policies that sub-national governments actually control, the rankings change a bit. Alberta still comes in first place, but Saskatchewan plummets.

Meanwhile, the best American state is South Dakota, followed by Tennessee, Delaware, and Texas.

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Daniel J. Mitchell

Daniel J. Mitchell is a top expert on tax reform and supply-side tax policy at the Cato Institute.
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