The CotoBuzz Journal, Community Journalism

October 2009

We do not make jokes, we simply watch the LA Times, the Orange County Register and CID/HOA board of directors and report the facts

Economic Freedom and the Triple Constraint

Posted by CotoBlogzz 09-24-2009 09:30 AM

Rancho Santa Margarita, CA - The Heritage Foundation & The Wall Street Journal compared 183 countries across ten specific freedoms such as trade freedom, business freedom, property rights, investment freedom and others, to come up with the so called The Link Between Economic Opportunity and Prosperity: The 2009 Index of Economic Freedom. Such index ranked Hong Kong at the top, while the United States was relegated to the number six slot

So, the question is, if the US was ranked sixth in The 2009 Index of Economic Freedom, what impact will the current spending frenzy have on the 2015 Index of Economic Freedom? In other words, what is the Before and After?

The Before state is largely controlled by what we call the US Economic Triple Constraint, which consists of organized labor, the US Congress and the Financial markets, before the bailouts.

Under these conditions, the US was ranked sixth, while Zimbabwe and North Korea were assigned the numbers 178 and 179 respectively, and Iraq and Sudan were not ranked.

We posit that under the new reckless spending there is a new Triple Constrain

Click on arrow below to see the After state

After State

The new US Economic Triple Constraint, consists largely of Card Check, Health Care and Cap & Trade. It is fair to say that under similar conditions as the 2009 Index of Economic Freedom, the 2015 US Economic Freedom as defined by the Heritage Foundation & the Wall Street Journal will go into a free fall.