Like the Fraser Institute’s Economic Freedom of the World and the World Economic Forum’s Global Competitiveness Report, the Index is a broad measure of liberty to engage in voluntary exchange in a system of secure property rights and honest government.
Unfortunately, the United States has been moving in the wrong direction in recent years. As you can see here, here, and here, America used to rank in the top 10. But this chart shows that the United States is now has fallen to number 12 and is considered to be only “Mostly Free.”
I’m not surprised to see Hong Kong and Singapore at the top of the list, but notice how large of a lead they have over the other four “Free” nations. Their big advantage, if you dig into the details, exists because of relatively lowburdens of government spending and comparatively modest tax rates.
Canada’s strong performance shows how a nation can improve with the right reforms.