Tuesday, May 23, 2006
The Pacific Research Institute has released the Economic Freedom Index, modeled after the Index of Economic Freedom, published by The Brookings Institution and the Wall Street Journal, which ranks the 161 countries in the world by 50 variables in 10 categories (trade policy, fiscal burden of government, government intervention in the economy, monetary policy, capital flows and foreign investment, banking and finance, wages and prices, property rights, regulation, and informal market activity). The new Economic Freedom Index ranks the 50 states by 143 variables in 5 categories (fiscal, regulatory, welfare spending, government size, and judicial).
Here are the Top 10 (most free) states:
The Wall Street Journal has published an op-ed on the study by Lawrence J. McQuillan and Hovannes Abramyan of the Institute: "Live Free or Move": Jobs Are Flocking to Low-Tax States for a Reason:
[T]he states that embraced supply-side tax cuts are not only financially more sound and enjoy stronger economies, but they are draining residents away from the states that opted for high taxes....In 2005, per capita personal income grew 31% faster in the 15 most economically free states than it did in the 15 states at the bottom of the list. And employment growth was a staggering 216% higher in the most free states.