GOLDSTEIN: Economic Freedom Falls in Canada: Report

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Economic freedom is declining across Canada, according to a new study from the Fraser Institute.

The fiscally conservative think tank said that based on the latest available data from 2019, the year before the global COVID-19 pandemic, the 10 Canadian provinces were well below the list for economic freedom compared to 51 US states. And 31 from Mexico.

Of the 92 In the jurisdictions evaluated, Alberta, which a decade ago was considered the most economically free jurisdiction in North America, has now dropped to 33rd, still the best result of any Canadian province.

The study – North American Economic Freedom, 2021, which measures public spending, tax levels and labor market restrictions – gave Alberta a rating of 8.0 compared to a perfect score of 10.

Behind Alberta, in descending order were BC (47th with a score of 7.91); Ontario (52nd, 7.83); Saskatchewan (54th, 7.78); Manitoba (55 °, 7.75); Quebec (56th, 7.71); New Brunswick (57th, 7.62); Nova Scotia (58th, 7.61); Newfoundland and Labrador (59th, 7.60); and Prince Edward Island (60º, 7.58).

The most economically free jurisdiction in the study was New Hampshire with a score of 8.23.

California finished 43rd with a score of 7.95, while New York was ranked 51st with a score of 7.85.

The worst performing state for economic freedom in the US was Delaware at 53rd with a score of 7.79.

All US states and Canadian provinces finished ahead of the 31 Mexican states evaluated in the study, where the best performance in economic freedom was Baja California in 61st place with a score of 6.65, while the City of Less economically free Mexico finished in 92nd place with a score of 5.63.

“Higher levels of economic freedom lead to more opportunity, more prosperity, higher economic growth, more investment and more jobs for Canadians,” said study co-author Fred McMahon.

“As economic freedom wanes in Canada, the economic prospects are also diminishing for Canadians and their families.”

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The study noted that among the 92 jurisdictions evaluated, those in the least economically free quartile had an average per capita income of only US $ 2,362, while those in the most economically free quartile had an average per capita income of US $ 51,666.

An earlier Fraser Institute study by the same author published in September found that, based on 2019 data, Canada, historically ranked in the top 10 of 165 countries for economic freedom, had dropped to 14th.

That study evaluated government regulation, international trade freedom, government size, property rights, public spending, and taxes.

“Due to higher taxes and more regulation in Ottawa and the provinces, Canadians are less economically free, which means slower economic growth and less investment in Canada,” McMahon said.

“When people are free to pursue their own opportunities and make their own decisions, they lead more prosperous, happier and healthier lives.”

That study concluded that Hong Kong (before China’s crackdown on democracy) was the most economically free jurisdiction of the 165 evaluated, followed in descending order by Singapore, New Zealand, Switzerland, Georgia, the United States, Ireland, Lithuania. , Australia, Denmark, Mauritius, United Kingdom, Estonia and Canada.

Russia finished in 100th place in that study, India in 108th, Brazil in 109th and China in 116th. The least economically free country was Venezuela in 165th place.

The countries in the top quartile of that study had an average GDP per capita of US $ 50,619 compared to US $ 5,911 for those in the bottom quartile.

Reference-torontosun.com

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