The U.S. Isn't as Free as It Used to Be -- Canada now boasts North America's freest economy.

The Wall Street Journal ^ | 01-19-10 | TERRY MILLER

[GOP_Lady]

The United States is losing ground to its major competitors in the global marketplace, according to the 2010 Index of Economic Freedom released today by the Heritage Foundation and The Wall Street Journal. This year, of the world's 20 largest economies, the U.S. suffered the largest drop in overall economic freedom. Its score declined to 78 from 80.7 on the 0 to 100 Index scale.

.The U.S. lost ground on many fronts. Scores declined in seven of the 10 categories of economic freedom. Losses were particularly significant in the areas of financial and monetary freedom and property rights. Driving it all were the federal government's interventionist responses to the financial and economic crises of the last two years, which have included politically influenced regulatory changes, protectionist trade restrictions, massive stimulus spending and bailouts of financial and automotive firms deemed "too big to fail." These policies have resulted in job losses, discouraged entrepreneurship, and saddled America with unprecedented government deficits.

In the world-wide rankings of economic freedom, the U.S. fell to eighth from sixth place. Canada now ranks higher and boasts North America's freest economy. More worrisome, for the first time in the Index's 16-year history, the U.S. has fallen out of the elite group of countries identified as "economically free" by the objective measures of the Index. Four Asia-Pacific economies now sit atop the global rankings. Hong Kong stands in first place for the 16th consecutive year, followed by Singapore, Australia and New Zealand. Every region of the world maintains at least one country among those deemed "free" or "mostly free" by the Index.

[GOP_Lady]

[GOP_Lady]

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[1rudeboy]

Free-traders to be blamed in 10 . . . 9 . . . 8 . . . 7 . . . .

[brianr10]

Maybe tonight’s election results portend a change.

[ButThreeLeftsDo]

Okay....It is now apparent that Scott Brown will be the next Senator from the state of Massachusetts. It is my belief that FreeRepublic played no little role in this earth-shaking event. It is now time to send another message to those who would take away our freedoms, tax us into poverty and force socialism on us all.

Let's dig down deep tonight and do what we can to end this FReepathon. Let's make sure that the most popular conservative website continues long and strong.

Thank you!

[aimhigh]

I’ve always thought the easiest way to gauge freedom was to see how much of your own money the government allows you to keep.

[danielmryan]

Things are really becoming topsy-turvy. Canada's unemployment rate is well below the U.S.', Canadian banks have been publicly lauded for their soundness, and now Canada outranks the U.S. in economic-freedom terms.

I recount not to rub anything in, but because it reverses what has been accepted as normal up here in Canada. Back when I was a lad, some of Canada's best political flacks were saying that Canada's relative lack of economic freedom was proof of Canada's moral superiority. The higher unemployment rate was included, though not explicity, in the holier-than-Yankee mantra.

Now, it's reversing. Geez gawd: it might even be safe now to be a Canadian patriot without having to lip-service tithe.

[Snowyman]

Back when I was a lad, some of Canada's best political flacks were saying that Canada's relative lack of economic freedom was proof of Canada's moral superiority.

Interesting . I don't remember that and wonder who the best "political flacks"were?

[1rudeboy]

For your list.

[fanfan]

Thanks for the ping, 1rudeboy.

[Candor7]

Canada deserves kudos for keeping good regulatory over sight in its banking system.

In the USA, the banking regulations were not politically correct and were therefore not enforced.The leftists had fannie mae and freddie mac, The USA’s equivalent to CMHC, buying sub prine welfare mortgages from banks and poisoning the international economy. WHY?

The left wanted tio destroy capitalism. They almmost did it.They are still tryinig, Fannie and Freddie are still purchasing sub prime welfare mortgages under Obama, and pressuring banks t9o make them a percentage of their portfiolios, ITS AND ILLEGAL WELFARE PROGRAM.

Its the same in Canada, CMHC offer 100% mportgages and they are trying to create a housing bubble just like the USA so they can bash the capitalists in Canada who have kept the Canadian Economy strong. Liberals and NDPers within the civil servuce are trying to comlete the same end run in Canada,as was done in the USA, using CMHC to foist a bogus lending welfare program on the people of Canada. SUPPORT NO 100% mortgages!!!!!!

Mark my words! Canada needs to watch CMHC, and prevent them from doing what the left has done TO the USA and the world economy.

[Former Proud Canadian]

Umm, I don't know where you get your information, but CMHC is NOT promoting 100% mortgages. In fact, there are rumours of CMHC tightening the down payment requirements.

CMCH takes pains to make sure purchasers have at least a 5% down payment one way or the other. You must show proof that you have that money on hand before closing. I see it every day.

[Candor7]

CMHC WAS PROMOTING 100% motrtgages until recently, 40 year term.

Now they promote 95% mortgages for a 30 year term.Five per cent down is hardly a barrier. It should be 20% down for all lending except personal homes.

Real Estate bubbles are now being created in Toronto, Vancouver and Montreal.

In about 6 months to a year the bubble will burst, when interest rates go up.

And I hope that there is no illegal social welfare lending program sureptitiously foisted on Canada by leftist bureaucrats, as happened here in the states, thanks to the machinations of real estate moguls Harry Reid,, John Mccain, a$$hats Chris Dodd and Barney Franks and others.

It could easily happen, Canada has leftists in the civil service who are just as radical as those we have in the USA, if not worse.And they are desperate tio get rid of conservative government, whch is actually showing Canada how a free nation can be run and flourish. THE CANADIAN LEFT ARE DESPERATE!

Canada has a very dangerous housing bubble developing RIGHT NOW!And its fueled by a leftist bureaucrat, end run around government oversight.Harper should keel haul the lot of them.

As we speak 200K sh*t holes in Montreal,previously selling for 200 grand a year ago are going for a half million dollars. A VERY BAD < BAD SIGN>!

This is a wholesale waste of the new strength of the Canadian Dollar, designed to ruin capitalism in Canada and subvert the Canadian economy to the leftist agenda of tax, tax and buy votes to get rid of the best government Canada has had in 50 years.

[Former Proud Canadian]

Candor, settle down a little, we are on the same side.

CMHC was granting 100% mortgages, but, you still had to prove a 5% down payment. Don't ask me to rationalize that one. It doesn't make any sense to me either.

As for the real estate bubbles. Vancouver, Edmonton, Calgary, Fort McMurray, Saskatoon, Ottawa, and Toronto have very high real estate values. Too high for my liking, but, there are reasons for the rise in all of these cities that go beyond low down payments or speculation.

The Vancouver market has been fueled for years by Asian buying. They get a Canadian passport and a house in Vancouver as a safe house if TSHTF in China or Hong Kong. Edmonton and Calgary are markets driven by the high price of energy. As long as oil stays high and the Alberta government is conservative you will see high real estate prices in those cities. Fort McMurray is, of course, an oil boom town and will continue to be so as long as oil is over $70. Saskatoon is booming because of uranium, oil, and potash but it has a diversified economy and it not really at the bubble stage.

The Toronto market, to a great extent is fed by immigration and foreign investment (see Vancouver). The Ottawa market is juiced by the expanding federal government.

Montreal is a different story. If real estate is booming there, it might be a bubble because there is no real growth in that city, hasn't been for years.

Do you know how CMHC works and how it is funded? It doesn't in any way resemble Fannie or Freddie. No such thing as VA loans in Canada either.

[Candor7]

Hey, i used to draft CMHC mmortgages. The fact is that CMHC can very easily fill the same functional role as Fannie Freddie , even though they are not composed, funded or structired the the same. Their purpose and functions are similar.The functuion of CMHC could easily become leftist, just as the CBC is full of leftist progues, so is CMHC.Who do you thinks sells immigrant mortgages? As long as the economy is good, no problem, but I am afraid we are in for a second phase.

Harper needs to watch the CMHC and mortgage development bureaucrats closely in the acricultural areas, very closely, and prevent a ruination of the Canadian economy through bad mortgages.

The Canadian dollar is stronger than it has been for a generation or more. It has the potential to exceed the value of the USD in very real value.Leftist and commies in both the USA and Canada want to halt that evolution.

[Former Proud Canadian]

Ok Candor lets just agree that the CBC should have been sold off by Mulroney in the eighties when broadcast television networks were worth something. I'm not going to argue with you about the political leanings of CMHC employees, they are civil servants.

But you cannot compare the financial structures of CMCH with fannie and freddie. The real estate markets on either side of the border are also skewed by the tax policies of the respective governments. Don't you think that the ability to deduct mortgage interest encourages people to carry larger mortgage amounts in the US? In Canada, there is no deduction, no capital gains on your principle residence either. That makes a huge difference in the amount of debt individuals are willing to carry.

[Candor7]

I agree with what y9iou say but y9ou know , we are talking about the craton of a housing bubble led by greed, bogus financing if over vakued property and immigrants who do not know any better than to buy what is offered.

Greed fules it.

All those things are possible in Canada , despite the factors you have demonstrated so wonderfully and clearly.

Harper needs to watch the leftists at CMHC, and their sub rosa connection to leftist ideologue bankers. They are busy emulating fannie/freddie of the USA.And why not, so far they have gotten off scot free here and are doing the same all over again here in the USA.

[danielmryan]

I don't have a specific reference, but it was part of the culture. Don't you remember all that talk about how Canada was better than the States because the government was more "generous" et. al.? That's what I was referring to.

[Snowyman]

Don't you remember all that talk about how Canada was better

Seems like I've heard that all my life and on several points , I'm not inclined to disagree . However , I don't recall this logic, Seems to me rather limp ," that Canada's relative lack of economic freedom was proof of Canada's moral superiority. "

One thing I do believe is that in Canada , for the individual , freedom or as free as one can be , was in the late 50's, early 60's .

The bottom line is , There is no one in government smart enough to tell you how to run your life. Ever.

[danielmryan]

I'm not agreeing with it, nor pushing it, I'm just noting it. As far as overall freedom is concerned, the period you brought up was before I was alive. I've never had any experience of Canada pre-Trudeau.

Anyways, as I noted earlier, things are changing for the better in Canada. We might even see confident Canadians growing in number.