Economic Theory

Freer economies are more prosperous



Annabel Denham writes for The Telegraph

In the Media

Annabel Denham writes for The Spectator

Alexander Hammond writes for CapX

In an article for CapX, IEA Policy Analyst and Director of the Initiative for African Trade and Prosperity, Alexander Hammond, cited new research released by the Fraser Institute, in conjunction with the IEA, which ranks the level of economic freedom for 165 nations. The UK ranks 12th, up one position from last year.

Alexander argues the paper provides evidence that the freer an economy is, the more prosperous and healthy the nation is. Alexander said: “Average incomes in the freest (i.e. most capitalist) quartile of countries are more than 8.5 times higher than average incomes in the least free quartile ($50,619 and $5,911, respectively.) Indeed, the gap between the freest and least free economies is so vast that the average incomes of the poorest 10% of people in the freest economies are more than twice average incomes in the least free nations”.

Read the full article here.