Arnold Kling

Economic Freedom

Arnold Kling, Great Questions of Economics
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The Heritage Foundation measures economic freedom in different countries. The average income per capita in the eleven countries classified as "free" is close to $27,000. The average in countries classified as "mostly free" is slightly less than half of that. The average in countries classified as "mostly unfree" or "repressed" is about $3500.

Discussion Question. The factors in the index of economic freedom include trade restrictions, flexibility of wages and prices, extent of government regulation, openness to foreign investment, and other components. Are these fair measures, or are they biased to favor countries that are successful without necessarily having freedom?

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