While Canada improved their ranking to move into the top 5 countries on earth in terms of economic freedom, the United States, who held the number 2 spot in the year 2000 has fallen to number 18 in the world.

The Economic Freedom World Report that is released each year posted its report on Tuesday, September 18th and showed that Canada was now tied with Australia – both now considerably ahead of the United States who used to be among the world leaders in economic freedom.

The U.S. ranking is its lowest ever and is due to record government growth that restricts businesses from competing, being able to quickly respond to market needs and other limitations caused by heaps of government regulations. This in addition to record debt and holding the world’s largest tax rate on corporations.

The study’s authors point to research that shows nations with high levels of economic freedom — plenty of personal choice, voluntary exchange, freedom to compete and security of private property — do better in terms of well-being.

They tend to have higher GDPs, less poverty, longer life-expectancy and more political and civil liberties.

Sources: National Post, Restoring Liberty