Free-market capitalism is losing supporters these days. Wall Street occupiers blame banks, financial firms, and Wall Street for the bad economy. President Obama derides free markets, in true straw-man fashion, as you’re-on-your-own economics with “a free license to take whatever you want from whoever you can.” Even some Republican presidential candidates have inveighed against capitalism. What about the Founders? What did they think about free-market capitalism? Although the term capitalism was scarcely in use at the time of the Founding, the Founders supported the principle of economic liberty underlying it. … More

So you think you’re free? Thanks to big government spending and exploding debt, the United States — and indeed the world — is less economically free today than it was a year ago, according to the 18th annual Index of Economic Freedom, released yesterday by The Heritage Foundation and The Wall Street Journal. Economic freedom — the ability of individuals to control the fruits of their labor and pursue their dreams — is central to prosperity around the world. Heritage and The Wall Street Journal measure economic freedom by studying its pillars: the … More

Today, the 2012 Index of Economic Freedom launches. For 17 years, The Heritage Foundation and The Wall Street Journal have reported on the status of economic freedom around the world, measuring 184 nations across the globe according to rule of law, limited government, regulatory efficiency, and open markets. Globally, the 2012 Index noted a general decline in economic freedom across the board, with nations throughout the world unsuccessfully trying to “spend their way out of recession.” The United States itself dropped from ninth to 10th, continuing a slide that last … More

In this week’s Heritage in Focus, Heritage’s Kim Holmes, co-author of the annual Index of Economic Freedom, discusses this year’s index. Click here to listen.
How does the U.S. rank in economic freedom this year? How does economic fre…

In this week’s Heritage in Focus, economist Bill Beach discusses 2011′s economic misteps and how to readjust economic principles to guide policy in 2012. Click here to listen.
What is the fundamental economic concept that led to so many po…

In a weak economy, the government should not erect barriers to hiring. But two government policies have hindered the already slow recovery: increases in the minimum wage and government unionization. Eliminating these policies would not be enough to spur a robust recovery—the cause of our current economic weakness goes far beyond these measures—but removing them would help. In a truly free market, each individual pursuing his or her own interest has the freedom to choose where to work. Likewise, each employer has the freedom to decide whom to hire. Overall, … More

Today’s jobs report from the Department of Labor was encouraging news for the U.S. economy. It shows that 200,000 jobs were created and the unemployment rate ticked down from 8.7 percent to 8.5 percent. Jobs were created in every sector of the economy save one — government! This report is consistent with other economic indicators and shows that the economy is finally coming out of its malaise. But like any reports, they must be put into context. The creation of 200,000 new jobs is solid growth and above the 130,000 … More

The framers of the Constitution required the President to get the consent of the Senate before appointing senior government officials. They wanted to prevent the President from appointing those who would abuse the public trust. President Obama’s purported appointment of Richard Griffin to the National Labor Relations Board (NLRB) yesterday illustrates the importance of this constitutional restraint. The union movement has a problem: Just one in 10 nonunion workers wants to join a union. Few workers believe that unions have much to offer, and even fewer want their company to … More

Voters in Iowa will caucus today to select their choice for the 2012 presidential nominees. As the rest of the nation watches, Iowa’s choice could help frame the debate for this election year. And as the voters speak, others are weighing in on what they believe is the best direction for America’s government and policy in 2012 and beyond. Over the weekend, The New York Times editorial page was one of those voices, yet again carrying the torch of the liberal, progressive movement. The Times revealed its dismal view of … More

New polling data reveals that voters in Iowa and New Hampshire overwhelmingly believe the federal budget deficit is the most important economic issue facing the United States today. Despite the nation’s persistent high unemployment rate, voters in the two early-voting states chose the deficit by wide margins. The CNN/Time/ORC poll was conducted before and after Christmas with 999 registered Republicans in Iowa and a total of 1,508 adults in New Hampshire. The results, released Wednesday, paint a clear picture about what voters are thinking about heading into 2012. They also … More