US falls further in Index of Economic Freedom Due To Spending

January 12, 2011 07:23


In the just-released 2011 Index, the United States is in ninth place. That’s behind Hong Kong, Singapore, Australia, New Zealand, Switzerland, Canada, Ireland and Denmark.

John Stossel at Townhall.com

EXCERPTS:

The debt picture is dismal, too. We are heading into Greece’s territory.

Are we doomed? Not necessarily. Economist David R. Henderson points out that our neighbors to the north faced a similar crisis. In 1994, the debt that Canada owed to investors was 67 percent of GDP. Today, it’s less than 30 percent.

What did Canada do? It cut spending from 17.5 percent of GDP to 11.3 percent.

This wasn’t merely a cut in the growth of spending, a favorite trick of congressional committees. These were actual reductions in absolute spending.

If Canada can do it, we can, too. But the signs aren’t good.

So even if the Republicans managed to cut all discretionary non-security spending (which is not what they plan), the deficit would still be $747 billion. (The deficit is now projected to be $1.267 trillion.)

This is a revolution?

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