The more economic freedom people have, the more prosperous they can potentially become. | Canva
The more economic freedom people have, the more prosperous they can potentially become. | Canva
In the past, there have been clear correlations between economic freedom and the amount of prosperity that people are able to enjoy, according to an analysis by the Mackinac Center for Public Policy.
Because states across the U.S. and Mexico each have their own unique government and set of policies, the range of economic prosperity can vary widely. A recent study conducted by the Fraser Institute has affirmed this in its report, "Economic Freedom of North America 2020."
The study took a deep dive into economic freedom across states in the U.S., Canada and Mexico to determine the exact connection between economic freedom and prosperity of the population within those states. The study ranks the states based on three criteria: taxes, spending and labor market freedom. It also includes ten minor metrics including income tax, government spending and the presence of unions.
Of the top ten states throughout North America in terms of economic freedom and prosperity, nine of them belong to the U.S. The lone non-U.S. state was Alberta, a province in Canada, coming in at ninth. The highest-ranking state in Mexico didn't outperform a single U.S. state or any Canadian provinces.
The study also provided insight as to which states in the U.S. were most economically free. New Hampshire came in first in this regard, while California ranked last. The Midwest was a mixed bag when it came to performance. Indiana ranked eighth and Wisconsin ranked 19th, with all other states in the Midwest ranking in the lower half. Michigan ranked 31st in the country, followed by Illinois at 34th and Minnesota at 40th.
The highest-ranking states in Mexico were Jalisco, Michoacan and Baja California. The worst included Tabasco, Campeche and Zacatecas. Though the study is not bonded to any policy or law, it is important for states to be ranked high. This can be seen as evidence that the state government is successful at providing economic freedom and prosperity to its citizens -- or be the telltale sign that politicians should be seeking ways to be more competitive.
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