Sunday, December 1, 2019

Evidence that more reliance on the market system => higher standard of living


Each year the Fraser Institute rates the economic freedom of 162 (or so) countries. The executive summary for 2019 reports that

"Nations that are economically free out-perform non-free nations in indicators of well-being

  1. Nations in the top quartile of economic freedom had an average per-capita GDP of $36,770 in 2017, compared to $6,140 for bottom quartile nations (PPP constant US$). 
  2. In the top quartile, the average income of the poorest 10% was $10,646, compared to $1,503 in the bottom quartile in 2017. Interestingly, the average income of the poorest 10% in the most economically free nations is two-thirds higher than the average per-capita income in the least-free nations. ¢ In the top quartile, 1.8% of the population experience extreme poverty (US$1.90 a day) compared to 27.2% in the lowest quartile. 
  3. Infant mortality is 6.7 per 1,000 live births in the top quartile compared to 40.5 in the bottom quartile. 
  4. Life expectancy is 79.5 years in the top quartile compared to 64.4 years in the bottom quartile. 
"A number of other outcomes are more positive in economically free nations than in those that lack economic freedom. For example: 
  1. Political and civil liberties are considerably higher in economically free nations than in unfree nations. 
  2. Gender equality is greater in economically free nations. 
  3. Happiness levels are higher in economically free nations."

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