Economic Freedom In North America

Economic Freedom
North America has been referred to as a “land of opportunity” in the past; with the strong economies that both the United States and Canada have as well as the every growing industries in each country, it is no wonder that they have gained this reputation. But this begs the question, why are other countries not referenced in this way, particularly developed countries like Sweden? The answer quite simply boils down to economic freedom. “Economic freedom is the key to greater opportunity and an improved quality of life” (Economic Freedom). It is the way that each society operates and shows the differences between a capitalistic society (America) versus a socialistic society (Sweden). In further expanding on some of the various
The first subsection of economic freedom to be examined is business freedom. According to the Index of Economic Freedom, business freedom is, “a quantitative measure of the ability to start, operate, and close a business that represents the overall burden of regulation as well as the efficiency of government in the regulatory process.” Simply put, it is one’s ability to own and/or operate a business of their own freely. By freely, it means without too many constricting laws and rules enforced by the government. In a socialist society, this simply is not possible. Socialism emphasizes equality among all therefore it would be impossible for everyone to be equal if few owned large industries within the society. This is not to say that socialist societies live without businesses, rather the individuals living within this type of community cannot freely own a business. The responsibility falls to the government in order to keep the country economically stable while still not being driven by monetary gains. Because of this individuals businesses tend to be difficult to establish and even more challenging to close these enterprises. Contrarily, capitalist communities are extraordinarily free- in the business sense. This is because a capitalist society promotes hard work and innovations in order to create a stronger economy. It would be impossible for a capitalist society to survive without a plethora of businesses. This is because in a capitalistic society, businesses are not largely owned by the government therefore without an abundance of individual businesses the economy would weaken dramatically. As such, entrepreneurship is an ever growing field in which people are free to promote and share their ideas and products with the world. Organizations in these societies are easier to institute and, because of the abundance