A Lesson from the U.K.

Renee Pirrong / July 01, 2010

Seven of the eight economies ranked most free in the Index of Economic Freedom were once British colonies or trade posts. It’s no coincidence. Political institutions developed by the British such as representative democracy and rule of law provide a vital base for economic freedom.

Yet the U.K. no longer has the distinction of being ranked in the top ten freest economies. Its economic freedom score has fallen significantly in recent years due to expensive welfare programs that have eroded economic freedom and slowed growth.

The U.K.’s predicament is an ominous warning to other top ranked economies in the Index. Heritage Foundation Senior Visiting Fellow Dr. Robin Harris affirms that “the blunt truth is that in crucial respects, Britain is now failing. The country’s palpable decline from prosperity and security of just two decades ago constitutes an awful, but if intelligently observed, timely and useful warning to America.” We must heed this warning and vigilantly safeguard against policies that endanger our economic freedom. (more…)