As a farmer, when I travel, farmers often ask me if I have suggestions to make their farm more profitable. Because of my travels, I have a wide range of knowledge about agriculture around the world, but growing conditions are different everywhere, so I do not feel qualified to answer their question.
We produce wheat on my farm in Oklahoma in the US. This does not mean I can tell another farmer who produces wheat in a different country what to do. They may produce a different class of wheat; they also probably have different climate conditions and soil type than my farm. Therefore, I am not an expert on wheat, much less all the other things farmers produce.
I have been traveling again after an extended period of staying home and it has reminded me that economic policy changes are the answer to making people’s lives better. This is true of farmers and the rest of the public.
I have recently traveled to some countries which fall low on the Index of Economic Freedom. These countries have the potential to be very prosperous if their governments get out of the citizens’ way.
Economic freedom is the secret to improving lives all over the world. I recently saw this interview with Magatte Wade and everybody in the world should hear her message. She expertly describes why Economic Freedom is the answer to most of the world’s problems.
Economic Freedom starts with the Rule of Law. There must be private property ownership and private property rights. Laws must be enforced equally on everyone; ensuring citizens are safe and do not have their property stolen or damaged. Government corruption must not be tolerated.
Governments must be as small as possible. Taxes on citizens should be low. Citizens make better decisions on spending their hard-earned money than governments. Government spending should be low and should never run a deficit.
Regulatory efficiency should be the goal. Basic regulations are necessary, but they should never be overburdening. Too much regulation stifles innovation and economic growth.
Open markets are key to building prosperous economies. Free trade both within a country and between individuals and companies in different countries is essential. Investment and financial freedom are also important.
Research shows Economic Freedom is strongly associated with human flourishing. Countries with more economic freedom have better standards of living, less poverty, more economic growth, better human development and social progress, cleaner environments, more democracy, more innovation, upward mobility, and entrepreneurship.
Economic freedom, including the rule of law, fiscal responsibility, market openness, and sound regulatory environments, is the surest path to resilience and prosperity. It is what made the United States of America the place many people want to call home. Unfortunately, we have been moving down the Index of Economic Freedom in the last few years. I hope our politicians will turn this troubling trend around soon.
All countries should aspire to be like Singapore at the top of the Economic Freedom Index.
Hope Pjesky 