Economic freedom is the most essential route to greater opportunities and good standard of living for all in any society.
It is the freedom to select how to create, market, as well as use your own resources, while respecting others’ rights to reciprocate. In simple principle, economic freedom is an engine that drives success and prosperity worldwide and is the distinction between why some societies thrive while others do not.
It is the freedom to flourish and prosper within a nation without intervention from a government or financial authority. People are free to safeguard and protect their human resources, labor and personal property. The practice of economic freedom is common among capitalist states and it involves integrating various other constitutional and human rights to its operation in order to be economically free.
Importance of Economic Freedom
We cannot over emphasize the importance of economic freedom. It influences all aspect of a man’s life and his environment. When you live in a nation with a high level of economic freedom, it means you will earn higher income or pay, revenues and salaries. There is high reduction in unemployment rate, reduces hardship, brings about higher life expectancies and a conducive atmosphere to operate and live in. It brings about increase in the level of food security and security of individual life and properties.
How is economic freedom measured?
Indexes of how economic freedom is measured are found in Heritage and Fraser foundation to track economic freedom in the world. The Fraser Institute’s annual report, the Heritage Foundation’s annual report, the Economic Freedom of the World report, is produced in collaboration with Florida State University and Southern Methodist University, and also it evaluates five sub-components to gauge a nation’s degree of economic freedom.
These sub-components include the worth of the government based on income, expenditures and taxes; its legal framework and its protection of the rights to property of individuals; accessibility to money; freedom to move and trade internationally; and regulation of credit, business, and production factors – Land, Labor, Capital, and Entrepreneurship & Wealth.
How it works
In any economically free economy, citizens are free to do their business without interference from the government. It reduces inequalities in three prominent ways:
*It increases the rate of employment as well as enhances earnings flexibility: As economic freedom increases, there is increase in employment opportunities and a decrease in unemployment level, helps in the generation of higher revenue mobilization.
*It raises wide range of opportunities: That economic freedom brings about economic growth is essential. Growth typically brings more opportunity and a much better standard of living for everyone in any economy.
*It reduces corruption: Most people get their income from the jobs they do. However, in countries with high levels of corruption people closely related to corrupt officials could use these connections to get favors from them. These connections can help them get some benefits or unique and special treatment that others could not have access. Corruption is a bad disease and takes good things away, wastes limited sources and lowers the level of economic freedom in any society.
The impact of economic freedom on inequality is merely this: one of the most financially cost-free nations is also some of the equal. A nation cannot be referred to as economically free if it does not allow its citizens to operate in an atmosphere free from its interference and free from the introduction of some limiting economic policies.
Economic freedom, not “economic equality” must be our goal. Equality requires measurement; it requires the party seeking equality, by default, to elevate someone else and seek his standard and his approval. It also requires an effort to be accepted by the party to which one aspires. It makes little sense to get into that game because every time we reach that standard it can—and will be changed to an even higher standard.
Economic freedom is the clarion call in years past and now. Many have propagated that message and we have yet to heed it in a collective manner since we lost our minds over politics in 1965. Economic freedom means setting our own standards, and not having to meet those set by others. Economic freedom means the ability and willingness, and dare I say eagerness, to create jobs for our children.
Economic freedom means that we have multiple streams of income that can, of course, empower us individually and then empower us collectively. Economic freedom means producing, manufacturing, and distributing; it means owning natural resources to whatever extent possible and vertically integrating our businesses.
Economic freedom, as Claud Anderson advocates, means aggregating our dollars and utilizing them to our own advantage rather than some else’s. Economic freedom means what Pastor Jonathan Weaver and the Collective Empowerment Group are doing: leveraging the large number of church members and their spending capacity, and obtaining reciprocity from the marketplace. Economic freedom means, as S.B. Fuller and Malcolm X said, “Control.”
The new black economy is the transition
from mostly a service-based economy to a
manufacturing, distribution and
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