By Amela Karabegovic, Fred McMahon, Nathan Ashby, Russell Sobel
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Extra resources for Economic Freedom of North America 2008
Economic Freedom and Economic Growth: Does Specification Make a Difference? European Journal of Political Economy 22, 1: 60–81. Easton, Stephen, and Michael Walker (1997). Income, Growth, and Economic Freedom. American Economic Review 87, 2: 328–32. Godin, Keith, Milagros Palacios, Jason Clemens, Niels Veldhius, & Amela Karabegović (2006). An Empirical Comparison of Labour Relations Laws in Canada and the United States. Studies in Labour Markets 2 (May). Fraser Institute. Gwartney, James, and Robert Lawson, with Russell S.
Also worth noting is Louisiana’s consistently solid showing across all the categories, placing second in all but size of government at the all-government level. 42). ca. 4)—are separated by the narrowest of margins on the all-government summary rankings. 3). 6) ranks last on the all-government summary rankings but in the upper half of the state and local level summary rankings. In fact, unlike many of the other regional category breakdowns, the West’s category measures reveal a number of interesting juxtapositions: Alaska ranks first on both taxation measures but last on labor-market freedom and size of government at the state and local level.
Instead, as public-choice theory reveals, incentives in the public sector often focus on rewarding interest groups, seeking political advantage, or even penalizing unpopular groups. This is far different from mutually beneficial exchange although, as noted earlier, government does have essential protective and productive functions. In some ways it is surprising the debate still rages because the evidence and theory favoring economic freedom match intuition: it makes sense that the drive and ingenuity of individuals will produce better outcomes through the mechanism of mutually beneficial exchange than the designs of a small coterie of government planners, who can hardly have knowledge of everyone’s values and who, being human, are likely to consider first their own well-being and that of the constituencies they must please when making decisions for all of us.