Human Potential Exceeds the Human Burden

30 Friday Nov 2018

Posted by pnuetz in Abortion, Mobility, Redistribution

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Abortion, Border Control, central planning, dependency, Economic Burden, Economic Freedom, Eugenics, Human Footprint, Human Ingenuity, Immigration, Left Tail, Margaret Sanger, Open Borders, Planned Parenthood, Population Control, Private charity, Public Safety Net

Are human beings a burden, and in what way? Between two camps of opinion on this question are many shades of thought, and some inconsistencies. But whether the discussion is centered on the macro-societal level or the family level, the view of people and population growth as burdensome promotes centralized social control and authoritarian rule, with an attendant imposition of burdens on human freedom and productive effort.

Naysaying Greens

The environmental Left views people as a net burden on resources while failing to recognize their resource value, without which our world would yield little in the way of food and other comforts. It is mankind’s ability to process and transform raw materials that makes the planet so hospitable.

The world’s human population has increased by a factor of 18 times in the last 400 years, but food supplies have grown even faster. Each person has potential as a resource capable of a net positive contribution to societal and global well being. If we wrongly conclude that people are burdensome, however, it offers a rationale to statists for regulating the lives of individuals, preventing them from producing and consuming as they would otherwise choose.

Sirens of Dependency

There will always be individuals who cannot provide for themselves, sometimes due to temporary circumstances and sometimes as a permanent condition. If the latter, these individuals find themselves in the lower tail of the distribution of human productive capacity. The undeniable burden of this lower tail for humanity can be dealt with through various social support structures, including family, religious organizations, private social organizations, and the public safety net.

People of true compassion have always helped to fill this need privately and voluntarily, but “compassionate” motives can be a false and corrupting when the public sector becomes the tool of choice. Actual and potential beneficiaries of public largess can vote for their alms at the expense of others, along with those well-meaning partisans who confuse forced redistribution with compassion. And benefits and taxes often create disincentives that undermine a society’s productive dynamic. Under such circumstances, the lower tail and its burden of dependency grows larger than necessary, and society’s ability to carry that burden is diminished.

Burdensome Children

Children are unable to provide for themselves up to varying ages, so they do create an economic burden for their parents. That burden might loom large in the event of an unexpected pregnancy, but most parents find the burden well worth bearing, whether planned or unplanned, ex ante and ex post, and for reasons that often have little to do with material concerns. But many individuals and families in the lower tail simply cannot bear the economic burden on their own; others not in the lower tail might simply find the prospective burden of an unexpected pregnancy a bit too heavy or inconvenient for non-economic reasons.

Solutions are available, of course. They range from sexual abstinence and prophylactics to adoption services, as well as hard sacrifice by new parents. And then there is abortion. The pro-choice Left makes the argument that children are so burdensome as to justify the termination of pregnancies at almost any stage. The ease with which they make that argument and traffic in the imposition of that burden upon the innocent is horrific. Furthermore, regimes dominated by the Left have often instituted formal population control measures, and Western leftists such as the late Margaret Sanger, founder of Planned Parenthood, have advocated strenuously for eugenics.

Burdens at the Border

Are migrants a burden or a blessing? In general, the latter, because mobility allows individuals to exploit economic opportunities, with consequent gains to themselves and to those who demand their services. This is generally true from the perspective of nations; it is the basis of the traditional economic argument in favor of liberalized, legal immigration to which I subscribe. But some partisans on both sides of the immigration debate accept the idea that immigrants impose a burden. That may be correct under some circumstances.

Opponents of immigration reform certainly identify immigrants as a burden to productive citizens and taxpayers. Critics of border control, on the other hand, are motivated by compassion for political refugees or economically disadvantaged immigrants, whether employment opportunities exist for them or not. In fact, would-be immigrants are often attracted by generous public benefits in the receiving country, and so they are likely to add to a country’s lower-tail burden, as I’ve described it. But the no-borders crowd insists that society must shoulder any burden created by the combined effect of an open border with generous public benefits, and even immediate voting rights.

The Burdens of Overbearance

The Left imagines that people create many burdens, but the Left is happy to impose many burdens in pursuit of their “ideal” society: planned by experts, egalitarian, highly regulated, profit-free, and green. They wish to “save the planet” by imposing burdens, regulating and restricting economic growth and sparing no expense to minimize the human “footprint”. They wish to fund redistributive social programs by burdening productive resources with taxes, while crowding-out private efforts to provide charitable relief. They wish to prevent the perceived burden of children by offering, and even funding publicly, the “choice” to impose an ultimate burden on those too weak to register a protest. And they wish to burden taxpayers by availing all potential migrants, without question, of generous public benefits.

Burdens are a fact of life, but people with the freedom to exploit their own effort and ingenuity for gain have increasingly shouldered their own burdens and much more. Over the last few centuries, human ingenuity has expanded the effective quantity of all resources by many orders of magnitude. In so doing, the scale and scope of real poverty have been reduced dramatically. But those who would deign to manage our burdens for us, under the authority of the state, are more threatening to our well being than beneficent.

Economic Freedom and Mobility Reduce Poverty; Alms Are Impotent

02 Friday Nov 2018

Posted by pnuetz in Free markets, Immigration, Property Rights

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Direct Aid, Direct Assistance, Economic Freedom, Growth Accelerations, Immigration Quotas, Labor Markets, Labor Mobility, Lant Pritchard, Migration, Open Borders, Poverty Reduction, Property Rights

It’s very difficult to lift people out of poverty via redistribution or philanthropy. Small gains in income can be expected at best, but there are far more powerful ways to improve well being. These have to do with expanding the fundamental freedoms, rights and rewards available to private individuals. Harvard’s Lant Pritchard divides these efforts into two broad categories: policies that improve labor mobility, and those that lead to gains in-place via economic growth. His working paper, “Alleviating Global Poverty: Labor Mobility, Direct Assistance, and Economic Growth”, is available here.

Economic Benefits of Migration

Pritchard first explains that the freedom to migrate across borders in pursuit of economic opportunity allows workers from low-productivity countries to contribute much greater output in high productivity countries. In so doing, the workers gain far more than can be practically accomplished via direct aid, and according to Pritchard, at zero or little cost. So granting this freedom is a much more effective anti-poverty measure than aid payments.

Pritchard seems to imply that this is a persuasive economic argument for open borders. On that question, I take the position that countries are sovereign entities and that their citizens possess the right to determine the extent of immigration flows. And in fact, there are real costs of immigration flows that must be considered. Pritchard’s paper offers a powerful rationale for liberalizing immigration quotas, but here again, he dismisses certain issues that limit even that more narrow argument.

The prospective economic gains of the immigrants themselves are important, of course, but the economic needs of the destination country matter too. In the U.S., employers in many markets face a shortage of low-skilled labor, so immigration quotas bind on those markets. Making them less binding would certainly encourage economic growth. A greater influx of younger workers from abroad would also help America weather its demographic crisis, narrowing the shortfall in funding entitlement programs like Social Security and Medicare. Unfortunately, to those who do not already recognize these needs, Pritchard’s contribution is likely to carry little weight.

Still, Pritchard’s assertion that the cost of liberalized immigration is zero needs further examination. First, there are the very real costs of vetting and processing new immigrants. Second, unless all immigrants and employers are matched ex ante, which is virtually impossible, there will be adjustment costs that continue at least until the matching is complete. In the interim, and even post-employment, new immigrants might well require public aid to support themselves and their families. It is also quite likely that new tax revenue generated by immigrants will be insufficient to pay the full incremental costs of public resources consumed in providing marginal infrastructure, education, and other public subsidies.

Pritchard employs static calculations of the net benefits to be gained through greater labor mobility “at the margin”, but as the absorption of new immigrants into the workforce takes place, excess demands for low-skilled workers may turn into excess supplies, creating downward pressure on wages. In the presence of a minimum wage, that implies unemployment and a probable drain on public resources. So the source of the benefits discussed by Pritchard should not be viewed as limitless. He offers some mild rebuttals of this point and references one of his own papers in so doing, but the possibility cannot and should not be dismissed.

Economic Benefits of Economic Freedom

Pritchard’ second major point of emphasis involves the effectiveness of different kinds of private and public direct assistance, or “treatments”, in producing income gains over time. He offers evidence that the gains are relatively weak. He contrasts this with the potential gains from “growth accelerations” stemming from a variety of causes. The upside of a normal business cycle is one form, but that doesn’t really count if the gains are lost on the downside.

The most profound form of growth acceleration occurs upon the advent of a liberalized social order. This may accompany the downfall of an authoritarian government, the stabilization of a formerly unsound monetary regime, or as more sophisticated market institutions take hold in a formerly primitive economy. The main point is that there are fundamental social underpinnings of growth. These are the many dimensions of economic freedom: secure property rights, freedom of contract, minimal regulatory interference, low taxes, and competitive markets for goods and capital. These conditions are so straightforward that in developed economies we take many of them for granted, through they are threatened even there. But these conditions are sadly lacking in much of the under-developed world.

Conclusion

Allowing workers to migrate freely in search of the best opportunities is undoubtedly more powerful in improving their welfare than any form of direct assistance. That is a fundamental truth put forward by Lant Pritchard. However, in-migration can come with significant costs for the destination country. Therefore, immigration laws should allow sufficient flexibility with respect to flows to enable the capture of economic gains from immigration when they exist. Pritchard also emphasizes that economic freedom and the growth acceleration it makes possible do far more to reduce poverty than massive private and public efforts at direct assistance, however well-intentioned. Several earlier posts on Sacred Cow Chips have highlighted the impotency of redistribution for eliminating poverty. The Left has a tendency to dismiss such views as mere ideological assertion, but it is much more than that: it is the difference between penury and prosperity.

Francis, Papal Perónista, Courts Redistributional Mirage

15 Thursday Mar 2018

Posted by pnuetz in Markets, Marxism, Redistribution, statism, Welfare State

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Argentina, Che Guevara, Daniel J. Mitchell, Economic Freedom, Eva Peron, Juan Peron, Judialismo, Maureen Mullarkey, Pope Francis, Property Rights, Robert P. Murphy, Vatican, World Bank, World Poverty

Is world poverty really increasing? Actually, no, quite the opposite, and you can blame economic liberalism, capitalism, and free markets for that. Yet we hear exactly the contrary from Pope Francis who, despite his evident compassion, has an amazingly poor understanding of economics. He misstates basic facts, offers dimly reasoned analyses of human rights, and promotes ill-considered policies. Now that the Vatican is set to release the Pope’s first feature film, no doubt a stirring piece of social justice propaganda, it seems as good a time as any to review the confounded state of Francis’ economic reasoning. This is not the first time I’ve discussed the Pope’s policy views: this link contains three previous posts from SacredCowChips on which Francis was tagged.

The False Narrative

My inspiration for this post comes from Robert P. Murphy, whose recent commentary on Francis’ pronouncements is trenchant. Murphy covers this speech written by Francis for the World Economic Forum, but delivered by a Vatican proxy, in which the Pope asserts the following:

“… governments must confront … the growth of unemployment, the increase in various forms of poverty, the widening of the socio-economic gap and new forms of slavery, often rooted in situations of conflict, migration and various social problems.“

Francis refers to increasing unemployment and poverty, and I could let that phrase pass if he was referring to certain nations or locales that have experienced chronically depressed economic growth. But Francis’ description is rather general, as evidenced by his diagnosis of causes. More on that below. Regarding his statement about trends in poverty, he is flatly incorrect. Here is Murphy:

“As the World Bank reports, the global “extreme poverty” rate in 1990 was cut in half by 2010. Back in 1990, 1.85 billion people lived on less than $1.90 per day, but by 2013, the figure had dropped to 767 million such people—meaning that more than a billion people had been lifted out of crushing poverty.“

After the Great Recession, world unemployment decreased from 2009-2015, according to the World Bank, though it is estimated to have crept up slightly in 2016-17. Again, the Pope’s woeful tale of growing unemployment and increasing poverty is nonsense.

But the world is a difficult place. In the underdeveloped world, the range and quality of goods available is extremely limited, and $1.90 represents bare subsistence, yet it’s a condition that exceeds the historical norm in many places. Movement above that threshold can represent a meaningful improvement in economic well-being.

Francis may lack an appreciation for the general enrichment in material conditions that has been taking place over the last two centuries, which is ongoing, or perhaps he believes that even greater achievements are easily within reach but for certain injustices, though he offers no qualifications. Perhaps he is mistakenly generalizing specific instances of exploitation in the underdeveloped world, which often occur with the explicit blessing of the state apparatus in exchange for kickbacks.

Rights and Markets

Even more egregious is the Pope’s presumption that private markets are at fault for any stagnation that he has identified. A notable difference between countries with successful, growing economies and those mired in stagnation is the degree to which their citizens enjoy freedoms, especially economic freedom. That is a well-established empirical fact, as Murphy explains. But the Pontiff goes further with preposterous dogma on the meaning of human rights. Again, from Murphy:

“Although inspired by concern for the poor and the marginalized, the Vatican’s message is seriously flawed…. On a conceptual level, Pope Francis posits a false dichotomy between economic freedom and human rights. … ‘Economic freedom must not prevail over the practical freedom of man and over his rights, and the market must not be absolute, but honour the exigencies of justice.’

What does the concept of “economic freedom” entail? It means freedom to work in any occupation of one’s choice, without permission from the government, and certainly without being conscripted into service against one’s will. It means the freedom to start a business. It means the freedom to keep what you have produced, without having your assets seized by a rapacious regime. It means the freedom to trade with people who live in another country. It means the rule of law, where contracts are interpreted fairly and government officials can’t exercise arbitrary power.“

Economic freedom, more than anything else, means that individuals are endowed with property rights. To deny such rights is to banish any reward for work and differential rewards for work well done. If free individuals are rewarded, it is a matter of their own discretion as to whether they immediately consume the reward or save it in order to accumulate wealth. Yet Francis takes the misanthropic and childish view that economic freedom, private property and markets imply exploitation. He lacks a basic understanding of the revolutionary power of markets as a form of social organization.

Within just a few hundred years, a small fraction of the many millennia during which mankind was mired in poverty and pestilence, markets have dramatically transformed the existence of most human populations. Peaceful, arms length transactions made in mutual self-interest exploit only one thing: gains from trade that would otherwise be wasted. And only a form of social organization that enables those gains can dovetail with the human rights and justice that Francis so strongly desires. The denial of economic freedom, property rights, and self-interest prohibits those gains, however, denying humanity of the wealth necessary to achieve anything like justice.

Pope Francis is a redistributionist, and that goes well beyond the charitable giving, good works and service performed voluntarily by individuals. In fact, he is a statist, advocating an economic system in which property rights are abrogated, wholly or in part, and wages above a politically determined threshold are confiscated.

The Pope and Perón

Francis is often described as a “Perónist”, after Juan Perón of Argentina, the so-called “right-wing socialist” (and sometime associate of the murderous Che Guevara). Anyone familiar with the economic history of Argentina should know that’s not praise. Here is Maureen Mullarkey from the last link:

“Both Juan and Eva understood the enchantments of populism. A charismatic pair, they ruled more by dint of personality—personalismo—than democratic procedure. Ushers of an ‘option for the poor,’ they glorified the lower classes and denigrated the wealthy. (This, while they amassed a huge personal fortune from the Eva Perón Welfare Foundation.) …

When Francis speaks of ‘the people’ as a revolutionary vanguard that ‘overflows the logical procedures of formal democracy,’ he is lapsing toward that ecstatic Peronist vision of a Third Way—justicialismo. That the disposition and design of it ended in economic collapse and misery is nothing against the splendor of the mystique.

In his youth, Francis absorbed the myth but not its lessons. Chief among them is how much Argentina’s fiscal catastrophe owed to an extravagant welfare system that favored enforced wealth redistribution over development. Among the many factors of Argentina’s historic economic crisis, one cries for attention: Perón’s increasing reliance on redistributing income, not only between industries and occupations but between skilled and unskilled workers.“

For further perspective on Francis, Perónism, and the disastrous Argentine “experiment”, see this piece by Daniel J. Mitchell.

For many years, naive Marxists have accepted the myth that central economic planners could and would direct productive and distributional activities with foresight, efficiency, and integrity. None of those is possible. The only form of social organization capable of registering and processing the myriad and dynamic signals on preferences and scarcity is free market capitalism. It is the only system capable of spontaneously harnessing appropriate responses based on the complex incentives faced by consumers and producers, and all at a minimal administrative cost for society, free of the government intervention that typifies the Peronist welfare state and corporatism.

Conclusion

Pope Francis should know better than to make claims having no empirical support. He should also have the wisdom to understand and advocate for the empowering nature of private property rights and markets. Elevating the human condition is possible only by allowing people to be free — economically free — and endowed with opportunities to earn private rewards and build wealth. Francis should realize that the massive private gains afforded by the market mechanism enable rewards which spill over, inuring to the benefit of parties external to a given exchange. On the other hand, state domination and control of economic activity gives over decision-making to selfish and ill-informed public commandants, who are all too pleased to grant special advantages to those in a position to return private favors. Such graft and mismanagement of resources comes at the expense of others. That way lies decay and a return to the much more brutal conditions of the past, unlike the mutually beneficial promise of market exchange.

Equality of Economic Freedom and the End of Poverty

30 Friday Dec 2016

Posted by pnuetz in Capitalism, Liberty, Redistribution

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central planning, Dependence, Dierdre McCloskey, Economic Freedom, economic growth, Ex Ante Equality, Ex Post Equality, Exchange-Tested Betterment, Poverty, Redistribution, Robert Sowell, Safety Net, Self-Sufficiency

Should any form of equality be a central goal of society? Most certainly, but answers to this question often presume that government can set ground rules, ex ante, to ensure some form of ex post equality. Equality is a thing that can exist ex ante, as when rules are applied equally, and ex post, as when there are no differences in outcomes. The latter, however, always requires coercion and force of one form or another.

The great economist Deirdre McCloskey writes in the New York Times that forced equality will not save the poor; only growth can do it. Those who put their faith in the state to eliminate poverty lack an understanding of the underlying conditions and causes of the drastic improvements in the standard of living for even the world’s most impoverished inhabitants. It is all about economic freedom and capitalism. McCloskey explains:

“Eliminating poverty is obviously good. And, happily, it is already happening on a global scale. The World Bank reports that the basics of a dignified life are more available to the poorest among us than at any time in history, by a big margin. … Even in the rich countries, the poor are better off than they were in 1970, with better food and health care and, often, amenities like air-conditioning. …

… Free adults get what they need by working to make goods and services for other people, and then exchanging them voluntarily. They don’t get them by slicing up manna from Mother Nature in a zero-sum world. …

… We had better focus directly on the equality that we actually want and can achieve, which is equality of social dignity and equality before the law.“

Achievable equality has to do with ground rules, in the first instance. The rules must establish freedoms to which all participants are entitled. Many of these freedoms are enshrined in the U.S. Constitution, for example. With regard to strictly economic rules, we have: the right to private property, including the fruits of one’s own labor; the freedom to engage in exchange on terms of our choosing, and enter into contracts in pursuit of self-interest; and the freedom to take risks with real consequences.

Around the world, ex ante freedoms like these have been instrumental in lifting masses from the grips of poverty, not temporarily and artificially, but by encouraging self-sufficiency. That is the very ex post outcome that’s been so elusive for socialized economies and state-sponsored anti-poverty transfer schemes. By encouraging economic growth and an enhanced standard of living for those at the lowest end of the socioeconomic spectrum, ex ante freedoms achieve a crucial type of ex post equality: a life above penury.

McCloskey contrasts these kinds of equality with the utter failure of redistributive schemes to accomplish anything comparable:

“An all-wise central plan could force the right people into the right jobs. But such a solution, like much of the case for a compelled equality, is violent and magical. The magic has been tried, in Stalin’s Russia and Mao’s China. So has the violence.”

Not to mention the social and economic failures in Cuba, Venezuela, East Germany, Cambodia, Bulgaria, Ethiopia, Mozambique, Somalia, Romania, North Vietnam, North Korea, and too many others. And the sluggish growth to which many “social democracies” consign themselves by ceding dominance to the state. McCloskey continues:

As a matter of arithmetic, expropriating the rich to give to the poor does not uplift the poor very much. If we took every dime from the top 20 percent of the income distribution and gave it to the bottom 80 percent, the bottom folk would be only 25 percent better off. If we took only from the superrich, the bottom would get less than that. And redistribution works only once. You can’t expect the expropriated rich to show up for a second cutting. In a free society, they can move to Ireland or the Cayman Islands. And the wretched millionaires can hardly re-earn their millions next year if the state has taken most of the money.“

The following quote about poverty in the U.S. seems appropriate in this context. It is from Robert Sowell’s final column (having just announced his retirement from regular syndication):

“Most people living in officially defined poverty in the 21st century have things like cable television, microwave ovens and air-conditioning. Most Americans did not have such things, as late as the 1980s. People whom the intelligentsia continue to call the ‘have-nots’ today have things that the ‘haves’ did not have, just a generation ago.“

A sound argument can be made for the public provision of a safety net to cushion the blow of job losses in a market economy, or from the effects of catastrophic events on individuals or families. However, permanent status as a state-dependent must be discouraged for those capable of readjustment and self-reliance. Some such losses can and should be self-insured, not least by a willingness to pursue new opportunities, even those offering lower immediate rewards or requiring new training. Voluntary saving is another obvious form of self-insurance, of course. Nevertheless, few would deny the need for some form of social insurance to enable more comfortable transitions for those in need following certain kinds of losses.

McCloskey’s most powerful message involves the matter of value. Individuals trade with one another voluntarily only when it is of mutual benefit, which is dependent on the ex ante freedoms discussed above. There are mistakes in which parties are left unsatisfied by certain exchanges, but no one is compelled to repeat those mistakes. And they have every reason to innovate and seek alternatives. Participants may be happy to adjust the terms on which they are willing to trade, and they have every reason to imitate and repeat successes. These are the ways in which economic growth occurs:

“It is growth from exchange-tested betterment, not compelled or voluntary charity, that solves the problem of poverty.“

Capitalism and the market system have, by far, the best record of eliminating poverty in the sense of self-reliance. The only success against poverty that can be claimed by redistributionists is the substitution of lasting dependence on the state. Capitalism and the market hold the only real promise for eliminating poverty entirely.

Frittered Freedoms and Secular Stagnation

23 Tuesday Jun 2015

Posted by pnuetz in Government, Human Welfare

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Economic Freedom, Economic Freedom of the World, Fraser Institute, Freedom capital, Freedom Index, J.D. Tuccille, Pope Francis, Richard Alm, SMU Cox School of Business, W. Michael Cox, William J. O'Neil Center for Global Markets and Freedom

Economic freedom is strongly associated with higher living standards, but the United States is steadily working to reverse its historical gains. That conclusion is supported by the work of W. Michael Cox and Richard Alm from the William J. O’Neil Center for Global Markets and Freedom at the SMU Cox School of Business. They make use of an index of economic freedom published by Canada’s Fraser Institute, which is available for 94 countries going back to 1970. It incorporates 43 components such as tax rates, inflation, trade barriers, various regulations and the availability of credit.

“Hong Kong and Singapore, two former British outposts in Asia, have the highest freedom capital stocks, followed by the United States. India and China have adopted market-oriented reforms in recent years, but they’re still among the countries ranking low in freedom capital — a hangover from decades of central planning. Populism left Venezuela with a meager freedom capital stock.“

Cox and Alm fit a cross-country statistical model linking the freedom index to annual per capita consumption, which is a measure of the average standard of living. The data can be explored here. (I was hoping to see interactive scatter plots, but that may require the additional inconvenience of a download).

That freedom should be strongly associated with a society’s ability to consume may not be obvious to everyone, but it follows from some basic axioms: a more productive capital stock generates more choices and more consumables, and the capital will be more highly valued as a result. More freedom means broader choice and more flexibility over the use of capital, which enhances its value. There are many ways that freedoms can enhance the value of capital, such as lower taxes, fewer regulatory burdens and compliance costs, low inflation, and well-developed markets for capital funding. So it should be easy to recognize that the stock and value of a country’s capital are dependent on the freedoms under which it was cultivated. Cox and Alm refer to this contribution as “freedom capital”.

Comparing a country’s actual consumption to the level predicted by the freedom index measures the extent to which the county is consuming over or under a budget defined by its freedom capital. An under-prediction implies that the country’s actual level of consumption is not sustainable given the freedoms and/or constraints embedded in its institutions. A negative trend in the freedom index may also portend declines in the country’s standard of living.

The U.S. does not fare well based on these criteria. According to Cox and Alm, the U.S. consumes at a level 22% above what is afforded by its freedom index, and the index has declined over the past eight years. These facts do not bode well for our future standard of living.

The Cox and Alm research is also reviewed by J.D. Tuccille in Reason. He adds some interesting details from the Fraser Institute’s “Economic Freedom of the World” report showing the dramatic way in which the poor around the world are affected by economic freedoms:

“Annual per capita income is $11,610 in ‘most free’ countries, abruptly falling off to $3,929 in the second quartile, and declining from there [to $1,358 in the lowest quartile].

Economic freedom is also closely connected with civil liberties. Relatively free countries tend to respect people’s autonomy across the board. Authoritarian governments don’t confine their predations to any one area of human life. Freedom is a package deal.

So, if the United States is in for economic stagnation because of decayed economic freedom, we should expect that the poor will be hit hardest.“

I wish that Cox and Alm could arrange an audience with Pope Francis, whose ideas about helping the poor run precisely counter to these lessons.