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Two recent Mackinac Center events focused on economic policy in the United States.
National Review writer Kevin Williamson talked about many of the poor policy decisions happening across America, but expressed hope for the future.
Economist Dean Stansel discussed the state of economic freedom in America, past and present.
Williamson spoke at the Lansing Country Club for a Mackinac Center Legacy Society event — supporters who are interested in helping ensure lasting liberty by putting the Center into their estate plans.
Williamson is the author of the book, “The End is Near and it’s Going to be Awesome.” His lecture went through many of the litany of problems in the United States currently but ended on an optimistic note.
Williamson noted that there are a combined $100 trillion worth of liabilities for the U.S. government and all the state and local governments. That is the combined worth of everything in the world outside of property.
He sees that amount of liabilities as almost impossible to pay off. But Williamson notes that since the Industrial Revolution, essentially the birth of modern capitalism, the world has been getting progressively better.
He believes people will continue to find ways around government restrictions, making the world better as the cost of important goods continues to come down.
Williamson said the government can do a lot of damage, but individuals and entrepreneurs will continue to drive wealth in the world.
Stansel is a professor of economics at Florida Gulf Coast University. He is the author of an annual policy report that ranks countries around the world on economic freedom for the Fraser Institute.
“Economic freedom is the freedom of individuals to use their time and resources as they wish as long as they aren’t harming anyone else,” Stansel said.
There are five major components: The size of government; its legal structure and protection of property rights; sound money; freedom to trade internationally; and the amount of regulation (government restrictions and rules).
In 2000, the United States was ranked 2nd in the world on the economic freedom rankings behind only Hong Kong; today we have dropped to 17th.
Among the 50 states, Michigan is ranked 41st — up from 46th a few years ago but down from a peak of 30th in 2002.
Why has economic freedom declined? Stansel notes that federal spending has doubled since 2000 and tripled since 1990, while personal income has trailed behind. Most spending goes to “entitlement spending,” money appropriated by the federal government that is on autopilot. That is, it is automatically spent each year without being voted on.
Stansel notes that economic freedom rankings are strongly correlated with positive results around the world. The countries with the highest amount of economic freedom are richer, healthier, safer and happier while those with the least amount of freedom are the converse.
Stansel concluded by saying the United States and Michigan should reverse course and embrace policies that limit government taxing, spending and control.
Information and data on economic freedom rankings is at www.FreetheWorld.com.
