NZ 5th for economic freedom

January 16th, 2014 at 2:00 pm by David Farrar

The Heritage Foundation has released the 2014 economic freedom index. The top 10 are:

  1. Hong Kong 90.1 (+0.8)
  2. Singapore 78.4 (+1.4)
  3. Australia 82.0 (-0.6)
  4. Switzerland 81.6 (+0.6)
  5. New Zealand 81.2 (-0.2)
  6. Canada 80.2 (+0.8)
  7. Chile 78.7 (-0.3)
  8. Mauritius 76.5 (-0.4)
  9. Ireland 76.2 (+0.5)
  10. Denmark 76.1 (nc)

Only six countries are ranked free (above 80), 27 are mainly free (70 – 80), 56 moderately free (60 to 70), 61 mostly unfree (50 to 60) and 27 repressed (under 50).

The bottom five are:

  1. North Korea 1.0
  2. Cuba 28.7
  3. Zimbabwe 35.5
  4. Venezuela 36.3
  5. Eritrea 38.5

NZ’s rankings are below

Read more about New Zealand Economy.
See more from the 2014 Index.

The level of government spending is the only area in which we score really badly. They state:

The overall tax burden equals 31.7 percent of gross domestic income. Government spending equates to about 47.5 percent of GDP, and public debt is steady at 38 percent of GDP.

All need to drop down.

Tags: , ,

19 Responses to “NZ 5th for economic freedom”

  1. redqueen (562 comments) says:

    So our deficit is estimated at 15.8% of GDP? (aka, spending of 47.5% – 31.7% of taxes)

    Vote: Thumb up 3 Thumb down 0 You need to be logged in to vote
  2. Joanne (177 comments) says:

    Fantastic. All need to drop down, true, but we are in a good position.

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  3. Tautaioleua (305 comments) says:

    Shouldn’t they include Hong Kong with China?

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  4. Fletch (6,387 comments) says:

    You’ll notice that for the first time, the U.S has dropped from the top 10 altogether.

    World economic freedom has reached record levels, according to the 2014 Index of Economic Freedom, released Tuesday by the Heritage Foundation and The Wall Street Journal. But after seven straight years of decline, the U.S. has dropped out of the top 10 most economically free countries.

    For 20 years, the index has measured a nation’s commitment to free enterprise on a scale of 0 to 100 by evaluating 10 categories, including fiscal soundness, government size and property rights. These commitments have powerful effects: Countries achieving higher levels of economic freedom consistently and measurably outperform others in economic growth, long-term prosperity and social progress. Botswana, for example, has made gains through low tax rates and political stability.

    Those losing freedom, on the other hand, risk economic stagnation, high unemployment and deteriorating social conditions. For instance, heavy-handed government intervention in Brazil’s economy continues to limit mobility and fuel a sense of injustice.

    It’s not hard to see why the U.S. is losing ground. Even marginal tax rates exceeding 43% cannot finance runaway government spending, which has caused the national debt to skyrocket. The Obama administration continues to shackle entire sectors of the economy with regulation, including health care, finance and energy. The intervention impedes both personal freedom and national prosperity.

    But as the U.S. economy languishes, many countries are leaping ahead, thanks to policies that enhance economic freedom—the same ones that made the U.S. economy the most powerful in the world. Governments in 114 countries have taken steps in the past year to increase the economic freedom of their citizens. Forty-three countries, from every part of the world, have now reached their highest economic freedom ranking in the index’s history.

    http://online.wsj.com/news/articles/SB10001424052702303848104579308811265028066?mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702303848104579308811265028066.html

    Thanks Obama…

    Vote: Thumb up 2 Thumb down 6 You need to be logged in to vote
  5. Cato (1,095 comments) says:

    No – as an SAR it’s appropriate to treat Hong Kong as a separate entity in terms of measuring economic freedom.

    Interesting to see that the US has dropped out of the top 10 for the first time ever. The reality is we are a much freer economy than it is and have been for many years. This is the statistic that needs to be thrown in the face of people who assume that the “Overton window” in the United States is far to the right of where it is here.

    Vote: Thumb up 3 Thumb down 0 You need to be logged in to vote
  6. Joanne (177 comments) says:

    Yes, Fletch I noticed that. I would have expected them to be somewhere around us. HK and Singapore don’t surprise me.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  7. wreck1080 (3,912 comments) says:

    This article shows how National have failed to reverse the halcyon spending days of helen clark. . .

    http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10836241

    John Key and Bill English have been cowards when it comes to reducing government spending. They have relied on the chch earthquake and improving economy to hide the fact they are doing such a poor job.

    Vote: Thumb up 4 Thumb down 6 You need to be logged in to vote
  8. ldypen (40 comments) says:

    Freedom from corruption down to 94, they must have heard about Lenny then!

    Vote: Thumb up 3 Thumb down 2 You need to be logged in to vote
  9. AG (1,827 comments) says:

    Back in 2008, NZ got a “56” on Government Spending (putting us in the “mostly unfree” ranking) – up from the “47.1” we were given in 2000. Now, after 5 years of National’s keeping a lid on Government Spending, we get a 32.3, ranking us as deeply “unfree”.

    So – does the Heritage Foundation know something that we don’t, or should we treat these rankings with a healthy dose of scepticism?

    http://www.heritage.org/index/visualize?countries=newzealand&type=4

    Vote: Thumb up 2 Thumb down 1 You need to be logged in to vote
  10. Yoza (1,872 comments) says:

    You know you’re in trouble as a nation when a mouthpiece for foreign predators like The Heritage Foundation starts singing your praises. It’s like hyenas rating zebras higher than porcupines on their annual ‘freedom’ index.

    Vote: Thumb up 6 Thumb down 3 You need to be logged in to vote
  11. Tom Jackson (2,553 comments) says:

    Nevertheless, none of you will stop wanking on about how this is some sort of communist hell hole.

    Vote: Thumb up 6 Thumb down 2 You need to be logged in to vote
  12. dcrown (15 comments) says:

    @AG
    “Now, after 5 years of National’s keeping a lid on Government Spending” Lol, I think you forgot add #sarcasm at the end of your post;
    http://en.wikipedia.org/wiki/Economy_of_New_Zealand

    Why DPF pays attention to a hyper-partisan ‘think tank’ such as the Heritage Foundation beats me.
    FFS it is run by Jim Demint.

    Vote: Thumb up 4 Thumb down 2 You need to be logged in to vote
  13. Monty (978 comments) says:

    Wreck. I would suggest that factional would have liked to have been unable to undo the damage that was sustained upon the NZ economy by the traitorous Cullen and Clark. However, it would have been a suicide wish to undo the Woorking for families. Under labour welfare gets ratcheted up. And national as much as is possible only maintains those benefits! excluding the courageous work don in 1991 by Richardson and Shipley under the cowardly Bolger

    Vote: Thumb up 1 Thumb down 1 You need to be logged in to vote
  14. RRM (9,919 comments) says:

    2. Singapore 78.4 (+1.4)

    Yay! Singapore. :-)

    Vote: Thumb up 2 Thumb down 0 You need to be logged in to vote
  15. MH (753 comments) says:

    and barging in at 131 st place is our role model Bangladesh.

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote
  16. hj (7,011 comments) says:

    The place you roamed as a kid is forsale in Shanghai; that’s New Zealand the way you they wanted it.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  17. OneTrack (3,092 comments) says:

    Tom – “Nevertheless, none of you will stop wanking on about how this is some sort of communist hell hole.”

    The Greens haven’t got in yet. Lets review things in 2015 – if we are still allowed to of course.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  18. Viking2 (11,470 comments) says:

    RRM (8,511 comments) says:
    January 16th, 2014 at 3:57 pm

    2. Singapore 78.4 (+1.4)

    Yay! Singapore. :-)
    Vote: Thumb up 2 Thumb down 0
    =========================
    Stop that. Reddy will come stalking back. :lol:

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  19. Johnboy (16,529 comments) says:

    Shooting crims would make a huge reduction in our government spending. It’s apparently up to $100,000 a year to keep shit in the style they have become accustomed too. More for women for some strange reason.

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote