The word “Economic Freedom” is used for finding freedom within a nation without having any sort of intervention from a governmental authority. It is essentially the right that every individual must-have. However, there is an insurmountable number of people in third-world countries who are trapped in poverty. When there is a society that has a high degree of economic freedom, we want to think of that as an opportunity society. There is a lot of opportunity for flourishing, to create capital, care for the poor, for the community, and make lives better for family.
Economic freedom is empirically measured by economists yearly measuring how countries compare to one another. In other words, it is a macro view of how one country is doing relative to another. In “Defining Economic Freedom”, “The goal of economic freedom is for the creation and maintenance of a mutual sense of liberty for all”. As such, the approach taken in order to take a view of economics through a focus on policies within a country, and measurement within the Index of Economic Freedom.
These views are taken into account as categories that are measured in the Index. Rule of Law is vital for economic growth to occur since its what makes a uniform society. Within the market economy, it allows fair principles in order to let fundamental growth occur within the environment. The key to economic development is through property rights which is a protection that an individual gains for his property. In other words, property rights let citizens have the confidence to be able and take on entrepreneurial activity and property rights which is an element in assembling capital for both production and investment.
A country with Rule of Law like the United States allows the people to know what to expect from the government. The main goal of having the Rule of Law is to provide a society that treats everyone the same. Everyone should be treated equally under the law since they are to be applied evenly for individual freedom and for the protection of people’s rights.
Other aspects include Labor Freedom which means that in order for an individual to seek employment and work is a vital component of assessing economic freedom. Lastly, there is Monetary Freedom which demands a steady market demand and currency. If monetary freedom wasn’t in effect, it would be tough to make large capital.
According to the article Defining Economic Freedom, Trade freedom is “a composite measure of the absence of tariff and non-tariff barriers that affect imports and exports of goods and service”. The trade freedom score has to do with both the trade-weighted average tariff rate and Non-tariff barriers The different aspects in order to build the index from the data collected measures the aspect of economic freedom and its significance on its result of economic growth.
Within the Index of Economic Freedom, there is a correlation in believing that there is a relationship with individuals and the government. Freedom means, not only that our economy ought to be free and voluntary, but that government should stay out of personal affairs as well.