A report analyzing and comparing world economies, prepared by The Wall Street Journal and The Heritage Foundation, screams the conclusion that “The U.S. economy is no longer “free”.”
Dr. Kim R. Holmes, the Heritage Foundation vice president and co-editor of this new, comprehensive report states: “Unprecedented government intervention in the financial and industrial sectors has crowded out private investment. In addition to distorting prices, these actions — characterized by disregard for the contractual rights of shareholders and bondholders — have eroded property rights.”
The WSJ writes: Combined with massive increases in government spending, these actions led to a 2.7 point drop in the Index’s rating of the American economy. That plunged the U.S. out of the ranks of the “free” and into the category of “mostly free” economies… For the first time in the 16-year history of the Index, Canadians now boast the freest economy in the Americas.
The report summarizes the state of the U.S. economy as follows:
1) “Uncertainties caused by ongoing regulatory changes and politically influenced stimulus spending have discouraged entrepreneurship and job creation, slowing recovery.”
2) “Leadership in free trade is likely to be further undermined by ‘Buy American’ provisions in stimulus legislation and failure to pursue previously agreed free trade agreements with Panama, Colombia, and South Korea.”
3) “Tax rates are increasingly uncompetitive, and massive stimulus spending is creating unprecedented deficits.”
4) “Bailouts of financial and automotive firms have generated concerns about rights.”
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