Canada Falls In Economic Freedom

[Craig Read]

Canada ranks now 16th in the world in Economic Freedom as measured by the WSJ, Fraser and Heritage Institute's which use [unlike UNO surveys] a real and valid methodology.

Canada is falling progressively lower each year. No surprise, with lawyers, tree huggers, gay activists, eco fascists and liberals running the country.

1. Hong Kong

2. Singapore

3. New Zealand

4. Luxembourg

5. Ireland

6. Estonia

10. USA

11. Australia

15. Finland

16. Canada

The Index's most disturbing findings are in Latin America where 11 countries improved their standing in the rankings but 13 declined. Venezuela and Argentina are among the 10 countries of the world showing the greatest decline in economic freedom. Indeed, Venezuelan liberty declined so much that the economy is now considered "repressed."

The Index scores economic freedom in 10 categories, ranging from fiscal burdens and government regulation to monetary and trade policy. This year, the Index notes that despite an overall trend toward more economic freedom, a disturbing pattern of declining property-rights protection, detected over the past three years, continues world-wide.

Secure property rights help explain why Hong Kong and Singapore enjoy annual per capita incomes of better than $24,000 while Zimbabwe, where property rights have been trampled, has an annual per capita income of $559. Indeed, this correlation is but a subset of the wider conclusions shown in the Index. To wit, that the best path to economic development and rising living standards is the one paved with economic freedom.

Note to the Canadians - enshrine property rights in your moronic Charter. Property rights and private wealth accumulation is what separates the modern world from the stone age. Tree hugging has yet to produce a modern world society.

[Michael Hardner]

Well, some of these countries are just poor and unstble with corrupt governments. Even a 0% tax rate and liberal trade, which would rocket their 'economic freedom' rating wouldn't have a significant impact on incomes for a generation.

A lot of European countries - especially Scandanavian countries - are extremely socialist in nature. This means that the upper-middle and upper classes pay a large amount of income tax so that the lower classes can have a 'cadilllac' health-care system, no homelessness etc.

We would find such a system oppressive here, but it's part of the culture over there.

Link us to the original article - it seems interesting.

[SirRiff]

the US is 10, Canada is 16, and this is somehow a failure?

if the USA, the most prosperous nation in the history of history, is behind 1. Hong Kong, 2. Singapore, 3. New Zealand, 4. Luxembourg, 5. Ireland and 6. Estonia, then its pretty obvious that the problem isnt the constitution, or the tax system, or property rights, or whatever else lame reasons floating around.

there is nothing 'wrong' with the US markets, because by the very definition of sucess, the US has suceeded beyond all others. so if the obvious best economic markets in the world is ranked 10, then being 16 does not infer any failure by canada.

just to point out hong kong and singapore have grown like weeds in the 90s, and luxembourg/ireland/estonia are like apples compared to US/canada oranges.

we are doing fine over here thanks. congrats to hong kong.

[Lost in Manitoba]

Something is wrong here. Hong Kong is the model for economic freedom?? Is this just looking at the freedom to get rich or something? I know that some of the world's richest people live in Hong Kong, but it also has a huge population of poor people. Give us a link to this Craig. I have a feeling this is a ridiculous list measuring capitalist greed and 'freedom' only to screw over your neighbors in pursuit of wealth. Thank god we have tree huggers and gay activists running the country.

[Boydfish]

Hey, cool! I still qualify for instant Estonian citizenship(My dad was born there and our family was forced to flee as a result of the Soviet invasion). If the Canadians continue to screw around with BC, it'll become a more and more attractive option.

That aside, it's not a fair comparison due to many factors, with two biggies:

The first is cultural, the Canadians would never permit a Asian style attitude to government. That's why Canadians never understand BC. We're a Pacific Rim nation and Canada is a franco-socialist one. BC could handle a government that was as hands-off as Hong Kong; you Canadians would go nuts.

The second reason is that Estonia is a pretty small country with a very unified national identity. The Canadian confederation on the other hand, is essentially 10 very different nations spread over a large land mass. Without a strong, centralized government attempting to dominate all ten nations of the Canadian confederation, the whole confederation would fly apart. Estonia can afford to be relaxed about it because they are a single unified nation.

[Rasputin]

Boyd, you are right about the ethnicity and size of Estonia. Even so the survey was on economic freedom and don't u find it disquieting that on Economic freedom [which ignores many socio-political factors] that Canada is dropping ? Many analysts state that Canada is too de-centralised - in powers of law and taxation. Federally the way the system works the power is in the PM's Office and that is about it. If you look at tax revenues Ottawa collects only about 20 % of the total for the country [$170 billion +/-]. We should add to this indirect taxes through regulation [another 15 % or so].

Canada suffers from vagueness in powers. For instance Ottawa can use judicial activism to push through its agenda or declare that oil discovered in Nova Scotia now needs to be 'shared'. So we have creeping centralisation and a lack of democracy in Ottawa.

The Constitution is out of date, no internal free trade, punishing taxes, corruption running amok and Quebec and the East with their hands out.

Only Calgary - Edmonton and Toronto make profit here - not good enough.

[Boydfish]

Even so the survey was on economic freedom and don't u find it disquieting that on Economic freedom [which ignores many socio-political factors] that Canada is dropping ?

Economic freedom, as I'd define it, is an extention of your overall freedom.

The problem is that Canada is drifting more and more in to a socialist republic, which demands that the ruling elite dictates to the masses. The Canadians believe that the job of the government is to run the lives of the provinces and people's of their confederation.

Economic freedom comes from being able to generate wealth with the least degree of collective community interference. That interference can range from absolute law to you getting pelted with eggs by the community, but in the end, it's the same thing.

The important thing to remember is that too much economic freedom isn't a good thing either: Bilking little old ladies of their life savings ain't cool and we as a community should have safeguards against such practices.

Finding that balance ain't easy, especially in a confederation of vastly different nations. As I noted before, British Columbia, as a Pacific Rim nation is culturally more receptive to a vastly more "economically free" environment than Canadians, whose primary cultural reference is to European socialism with a high degree of government involvement.

I've often suggested that BC should assert it's tax collection from CCRA, mainly so that we could adopt a taxation format closer to the typical Asian model, especially as it pertains to income tax. Taiwan's tax system is absolutely brilliant. It works pretty much like the Canadian system, except with one real big difference: The higher your gross annual income, the lower your tax rate(The reverse of what we have). The logic is excellent: A person is rewarded for working and producing more, not less. As well, "hiding" income becomes counter-productive, as you want that lower rate.

[Rasputin]

Boyd, some good points. Economic freedom is as u suggest the ability to structure relations [contractual] in a setting in which gov't is not the prime arbiter, but the prime guarantor of laws, equal rights, security and contract/propery right enforcements.

Canada has simply too much gov't. Gov't tax revenues are 42 % of our GDP and a further 12 % according to the Fraser Inst. is sent to gov'ts for regulatory costs. Many studies [some cited on earlier posts on this forum] stipulate that above 30 % of GDP gov't size actually decreases your economic dynamism and hinders by some factor economic growth.

We are way beyond that point here.

I like the idea of a flat tax or your inverted Asian style tax.

You mention BC is less socialist than the rest of Canada. Well my image of BC are tree huggers and Suziki lovers not to mention Natives demanding more and more regulation, protection or money. The NDP before Campbell basically killed your economy. Tax revenues are pretty high there.