Economic Freedom and Quality of Life

On 06/29/2011, in Economics, Entrepreneurship, by Jordan Wilson

Economic freedom is an important ingredient in an individual’s business success and quality of life.

The Charles Koch Foundation offers a short, interesting video comparing economic freedom and quality of life in different countries. 

The Foundation is conservative in nature, so the video may be perceived by some as having a right of center slant.

That said, I think there is a substantial correlation between economic freedom and prosperity.

For me, small businesses and entrepreneurs are the critical driver of an economy’s success. Countries and regions within countries (states, provinces, cantons, etc.) that respect property rights, obey the rule of law, promote free market activities, etc., have better chances of success than countries that make doing business difficult.

Not explicitly stated in the video is how the cost of doing business greatly impacts prosperity. The greater the barriers to entry, the red tape imposed by government bureaucracies, the more onerous the tax rates, the higher the cost of business. And, unless those costs can be passed on to the consumer (as can be achieved by monopolies or government agencies), the less efficient and less profitable the business.

Anyway, take a look at this short video and think about the level of economic freedom where you live.

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