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Economic freedom best way to prosperity

Viewpoint

We all want more prosperity for our families and our community, but how do we get there?

“The best way is economic freedom,” said economist Jose Torra, who spoke in February at two luncheons hosted by the Grassroot Institute of Hawaii, on Maui and Oahu.

Torra is co-author of the “Economic Freedom of North America” index, published by the Fraser Institute, in cooperation with the Grassroot Institute of Hawaii and the Caminos de la Libertad, of which Torra is research director.

Torra defined economic freedom as the right of individuals to decide how to use their time, how to use their talents, and how to use their resources, with the annual index examining factors such as the level of taxation, union presence, unfunded liability debt for pensions and benefits, and opportunities for business to measure economic freedom throughout Canada, the United States and Mexico.

He said communities with higher levels of economic freedom experience greater prosperity, greater equality and more civil liberties.

Unfortunately, Hawaii ranked a dismal 45th out of 50 states in the latest report. In fact, our state has ranked below two states in Mexico (Baja California and Jalisco) in terms of economic freedom for many years, but finally just barely surpassed those states this year.

“How is this possible?” Torra asked. “How is it that an American state — a state from the land of the free — could rank below a Mexican state, where we are not really known for being a free country?”

He said Hawaii’s score for its high taxes was especially bad.

“You get a 0.6 out of 10. It’s lower than 1. You’re 50th out of 50 states in the United States,” he lamented.

Torra mentioned Hawaii’s high unionization and high regulations as other factors weighing down the state.

Why does this matter?

Because economic freedom has many benefits — among them more civil liberties, higher income per capita, less corruption, less inequality and less poverty.

Given all the benefits of economic freedom, it seems obvious that Hawaii should follow the roadmap by cutting red tape, reducing taxation and spending, and transferring some of the functions of government to the private sector.

Following these steps would not only increase our economic freedom ranking, but also lead to a better Hawaii for our families, and to a state our children will want to live in.

To watch Torra’s Oahu presentation, or read the “Economic Freedom of North America” report, visit our website at www.grassrootinstitute.org.

* Keli’i Akina, Ph.D., is president of the Honolulu-based Grassroot Institute of Hawaii, a “nonprofit public policy think tank that seeks to educate people about the values of individual liberty, economic freedom and accountable government,” according to its website.

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