Inflation is dragging the US economy to an all-time low on the Index of Economic Freedom

Published:

February 14, 2022 19:22 GMT

The North American nation jumped from 20th last year to 25th in 2022, according to the Heritage Foundation’s International “Rankings”.

The state of the U.S. economy has plummeted to an all-time low during Joe Biden’s presidency Index Heritage Foundation’s Annual Economic Freedom Award. The score, obtained this year, rated the Foundation’s chairman Kevin Roberts, “drawing a confusing picture both domestically and abroad.”

Part of this decline is due to the “decline of economic freedom” in the United States, which is “the serious cause of the alarm and has real and positive consequences for all Americans, especially low-income families and the working class.” , Under control Roberts.

The US index fell 2.7 points to 72.1 from a year earlier. In addition, the country moved from 20th to 25th place in its lowest ranking globally.

The index highlights a 40-year rise in inflation, with a 7.5% increase in consumer prices in January compared to the same month in 2021, a major factor adversely affecting the lives of Americans. During the current administration there was also a crisis in the supply chain and consumer confidence fell to a level not seen in eleven years.

At the same time, various sectors of the country’s economy were shaken by compulsory vaccinations and masks, while the US national debt exceeded $ 30 trillion, setting a new record.

Since its first edition in 1995, the Heritage Foundation has evaluated countries based on values ​​such as the Code of Economic Freedom, the rule of law, the size of the government, regulatory capacity and market openness, while also examining specific categories such as human rights. , Judicial performance, government integrity and financial burdens.

The global decline and cost of the epidemic

Kevin Roberts calls the Govt-19 epidemic and its aftermath one of the “greatest political, social and economic upheavals of recent decades,” while the trillions of dollars it spends further weakening the US economy and fuel inflation.

The authors of this index classify China as “almost non-existent” of economic freedom, although one factor points to a favorable environment for trade, namely foreign capital, inspired by the Asian giant Surpassed the United States By 2020, the country has become a major destination for foreign direct investment.