Unexpectedly Intriguing!
September 15, 2009

We couldn't help notice an unusual coincidence yesterday. First, the Economic Freedom of the World 2009 Annual Report has just been released by the Fraser Institute (HT: DoL), which is itself a pretty momentous event. Then we found that Will Franklin has tapped the Fraser Institute's 2008 Economic Freedom of North America to create a chart that ranks individual U.S. states and Canadian provinces according to their relative levels of economic freedom.

We thought we'd mark the occasion by taking the figures we already had for each U.S. state and Canadian province's GDP per Capita adjusted for Purchasing Power Parity for 2004 and correlate that data with their respective Economic Freedom Index score from 2008. The chart below reveals what we found:

GDP-PPP per Capita 2004 vs Economic Freedom Index Score 2008, U.S. and Canada

It would appear that there's a pretty strong correlation between how much economic output a state or province generates per person and the level of economic freedom that exists in each.

Will Franklin comments on the Economic Freedom Index and the general correlation he observes between it and how a state or province performs economically:

The index is based on 10 components in three categories:

1) Size of Government;
2) Takings and Discriminatory Taxation; and
3) Labour Market Freedom.

Interesting is how many of the most free states and provinces in the study are performing better economically than the states and provinces in the bottom half of the study.



About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Stock Charts and News

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.