Birthdays are traditionally a time for receiving presents, but on this Fourth of July, Americans celebrate a gift they have enjoyed every day for the past 249 years: freedom.
We boast of our liberty, and with good reason. We chart our own course. We elect our own leaders. We write, speak, travel and work as we see fit.
Yet in one vitally important way, we are less free today than we once were. I’m referring to economic liberty. It has been eroding for years, quietly, in ways that few of us even notice, at least directly.
Wait, you might say. I can work where I wish. I can earn as much as my skills allow. I can control my own funds. I’m economically free!
>>> Tech Is Advancing. Your Standard of Living Isn’t—Thanks to Government
True, but there’s a lot more to it. To see what I mean, look up the United States in the 2025 Index of Economic Freedom.
The index, created in 1995 by The Heritage Foundation and The Wall Street Journal, is a detailed, country-by-country policy guide that uses a series of key measurements to determine each nation’s economic freedom.
Every year, the index editors evaluate each country in four broad areas of economic freedom:
- Rule of law: Are property rights protected through an effective and honest judicial system? How widespread is corruption: bribery, extortion, graft, etc.?
- Limited government: Are taxes high or low? Is government spending kept under control, or is it growing unchecked?
- Regulatory efficiency: Are businesses able to operate without burdensome and redundant regulations? Are individuals able to work where and how much they want? Is inflation in check? Are prices stable?
- Open markets: Can goods be traded freely? Are there tariffs, quotas or other restrictions? Can individuals invest their money where and how they see fit? Is there an open banking environment that encourages competition?
Even without all the facts and figures in front of them, most Americans would say the U.S. performs quite well in these areas. And we do, particularly when it comes to property rights and business freedom, where we score much higher than the global average.
But when you really look under the hood and consider all factors, you see we need a serious tuneup. Otherwise, we would rank much higher than 26th out of 184 countries.
That’s right, 25 other countries are more economically free than ours. That would be a fantastic finish for many countries, but for a nation founded on the very idea of liberty, it’s embarrassing.
In 2008, the United States ranked seventh worldwide, had an index score of 81 (on a 0-100 scale, with 100 being the freest), and was listed as a “free” economy (a score of at least 80). Today, it has a score of 70.2 (a mere 0.1 of a point above last year’s record low score) and is only “mostly free.”
It’s one thing to trail Taiwan, Switzerland and Canada, but when former Soviet satellite states such as Estonia, Latvia and Lithuania leave you in the dust, something is seriously wrong.
And it is. Our chief malady: “Unchecked deficit spending and government debt have accelerated, and inflation undercuts economic livelihood,” the index editors note. As economist Richard Stern points out: “Over time, this leads to slower economic growth, fewer job opportunities and slower wage growth.”
In short, when politicians spend like drunken sailors, it costs us, not them. If we care about our freedom, we shouldn’t let them get away with it.
The problem goes beyond out-of-control spending. As the index editors add: “Substantial government expansion, increased regulatory and tax burdens, and a loss of confidence in the government engendered by growing perceptions of cronyism, elite privilege, and corruption have undermined America’s economic freedom.”
>>> How To Thaw America’s Frozen Housing Market
Then there’s the way government adds to the cost of trade. “Investment freedom is limited by ongoing protectionist restrictions and uncertainty,” the editors write.
So while we can take justifiable pride in how above-average we are when it comes to our strong judicial system and our vibrant financial sector, let’s not kid ourselves. Freedom may be our birthright, but it doesn’t occur magically. It must be cultivated. Not once and for all by our Founding Fathers, but by each generation.
That takes steadfast vigilance from all Americans. As Thomas Jefferson once said, “The people … are the only sure reliance for the preservation of our liberty.”
So let’s make our elected representatives understand that we want them to loosen unnecessary restrictions, stop spending us into the poor house and return the U.S. to the top 10 nations on next year’s index.
What better way to celebrate our 250th birthday next year?
