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De Omnibus Dubitandum - Lux Veritas

Friday, February 24, 2023

The (Even-Stronger-than-We-Thought) Relationship Between Economic Liberty and National Prosperity

February 24, 2023 by Dan Mitchell

I frequently call attention to the “anti-convergence club” because of the many real-world examples showing that nations with free markets and limited governments enjoy much better economic performance. Here are just a few case studies.

All this seems like a strong argument for smaller government. And it is. But all this data I’ve been sharing may understate the case for economic liberty. I wrote last October about how satellite-based measures of nighttime light (a proxy for economic vitality) show that nations with less political freedom have a tendency to exaggerate economic performance.

So what happens if we measure the relationship between economic liberty and economic performance using this more-accurate satellite-based data? Sean P. Alvarez, Vincent Geloso, and Macy Scheck answered that question. Here are some excerpts from their new study.........To Read More....

 

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