Live Free or Die? December 10, 2010
Posted by David in Economics, Politics.Tags: Freedom Index, Mercatus Center, United States
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I have long been fascinated by indices that compare different countries, regions, states or cities. In other words, I like to be able to compare stuff. But I’m especially fascinated by indices of various sorts of freedom, probably because I think that freedom is more important than anything else (which in my case does not mean that I would rather die than be unfree, although it does imply that I would consider death and being forced to live life as a North Korean as approximately equivalent).
When I think about freedom, I tend to think in terms of property rights. To be more free means that you have greater use, exclusion, income, and transfer rights over your person and property. This implies that all freedoms are basically property rights, which kind of implies that it’s nonsensical to distinguish between economic and other freedoms. All freedoms are economic, including so-called “non-economic” freedoms as your right to say and write whatever is on your mind, your right to produce, buy or sell drugs and your right to gamble away your savings. My hunch is that what counts as “economic freedom” is simply those freedoms that most self-described conservatives like, while whatever does not count as an “economic freedom” happens to coincide with what most conservatives don’t like (drugs, gay marriage, prostitution, immigration, gambling, unconventional lifestyles etc.).
I was therefore pleasantly surprised that the Mercatus Center has published an “overall freedom index” for the 50 American states. The weights of that index look like this:
According to this index, relative freedom is not limited to low taxes, low government spending and flexible labor and land markets. It also implies the right to use and privately buy or sell a variety of controversial goods and services such as gambling services, guns, education, sex, and drugs as well as the right to refuse to use seat belts, motorcycle helmets etc.
So what state offers the greatest overall freedom (i.e. the most comprehensive set of private property rights) to residents? It happens to be the “live free or die” state: New Hampshire, with Colorado and South Dakota as runners up. The worst (least free) states are New York, New Jersey, and Rhode Island. Some states combine high levels of “personal freedom” with low levels of “economic freedom” and vice versa. For example, Alaska is the best state in terms of “personal freedom,” but the 2nd worst on fiscal policy. Maine is the 2nd best state on “personal freedom,” but the worst state as regards “regulatory policy.” In contrast, Georgia ranks 6th on “economic freedom,” but 42nd on “personal freedom.” And New York? 50th on fiscal policy, 44th on regulatory policy, and 48th on “personal freedom.”
