Wednesday's Wall Street Journal contained an editorial by Terry Miller, director of the Center for International Trade and Economics at the Heritage Foundation.
The Index of Economic Freedom, jointly published by the Heritage Foundation and WSJ, recorded the lowest US rank in a decade. The UK dropped from 11th to 16th place. Leading the list of 179 countries are Hong Kong, Singapore, Australia, New Zealand and Switzerland. Canada is now 6th. Denmark is just ahead of the US.
Denmark!
What does it take for our state and federal governments to wake up to the risk of US economic atrophication? Our country's historic global diplomatic and military power have always been based upon our vibrant, leading economic power.
Now our tax rates are high by global standards, we've borrowed too much and misspent most of it. Our politicians have voted for the biggest lurch leftward toward a European social state since Medicare and Medicaid passed Congress in the late 1960s.
Even S&P and Moodys warned this week that continued US profligacy will result in debt rating downgrades.
These rankings and credit warnings will eventually serve to harm US businesses, too, after our government has lost its ability to borrow at preferential rates. The dollar, too, after decades of hollow warnings, may finally begin to lose its role as an unquestioned global reserve currency.
This recent Economic Freedom slip in rank is a warning we should all take seriously, especially when we view which countries are now outperforming the US.
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