Pennsylvania is the 27th freest state in America according to the Fraser Institute’s annual Economic Freedom of North America report, which is hardly news to be celebrating.
States were ranked based on their size of government, level of taxation and labor market restrictions. Texas and South Dakota topped the US list, while Maine ranked last.
Why is economic freedom important? Higher levels of economic freedom directly correspond with more job opportunities and a higher standard of living.
According to the study, the most-free states averaged $55,000 per-capita in 2012 gross domestic product compared to roughly $48,000 for the least-free states. In other words, more economic freedom translated to a $7,000 boost in income per person.
When you consider the entire continent, Pennsylvania ties for the 30th freest state or province. Texas is the only US state to make the top five (the rest are Canadian provinces). Over the past decade, economic freedom has declined in both the United States and Canada, but the decline has been more gradual in Canada.
If Governor-elect Wolf and the new state legislature truly seek a fresh start for the commonwealth, they must take steps to restore economic freedom.