Tuesday, December 19, 2006

The other blessings of economic freedom: If you just read my post right below this one, you might say to yourself that, ok economically free countries are rich, but they are both unequal and indifferent to the welfare of others. Wrong on both accounts: using the same sample I just described, I found that economic freedom is positively related to a willingness to help others (.57) and basically unrelated to income inequality (-.14). Evidently, markets create wealth, they distribute it broadly, and the wealth they create gives people the luxury to worry about the well-being of others.

1 comment:

Jo Esperanto said...

Which index of economic freedom did you use? Gwartney keeps and updates a comprehensive list. His list is particularly useful because each country score is a composite of several components and he lists the scores of the components so you can generate correlations using the components.

http://www.freetheworld.com/release.html

As if a comparison between North Korea and South Korea were not enough, or Taiwan with the pre-reform Mainland, or East Germany with West Germany, or the French cantons of Switzerland with France, or the German cantons of Switzerland with Germany, Gwartney also finds a strong positive relationship between economic freedom and prosperity.

As my friend from Canada would say, "Duh."