Countries around the world are at a crossroads. Whether they choose the path of economic freedom – as President Donald Trump does in the United States – or socialism will determine not only their material prosperity, but also the security and prosperity of their people.
That’s the core finding of the Heritage Foundation’s just-released “2026 Index of Economic Freedom.” Progrowth policies are an investment in the people who make countries strong, resilient and prosperous.
That is certainly the approach President Trump took in 2025. His policy choices, which set the stage for America’s comeback and paved the way for greater economic dynamism, halted the precipitous decline in America’s economic freedom. The America’s Index score for President Joe Biden’s final year in office was the lowest ever.
One crucial, unequivocal lesson from the Index over the past few decades is that what really matters is the direction and orientation of policy – that is, the change at the margins.
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The driving force behind our post-Bidenomics wave has been lower inflation, budget reform, and investment freedom, all of which stimulated private sector growth. Unlike the elite hand-wringers inside the Beltway, no one should be surprised. Lower taxes and fewer, fairer regulations have always increased dynamism, stimulated entrepreneurship and sharpened America’s competitive position.
Wherever people are free to compete, innovate, save and invest, countries prosper. Wherever they are not, they don’t do that.
This has been the consistent finding of the Index for the US and the world for decades. In the 2026 Index, countries with greater economic freedom, such as Singapore, Switzerland and Ireland, once again enjoyed high incomes, innovation and institutional strength.
And yet the world remains mired in narrow-minded, short-sighted Marxist superstition about the ability of political elites to spend their countrymen’s hard-earned money better than they can spend it themselves.
As the Index reports, socialism’s Washington Generals-esque losing streak continues widening rifts of time, geography and culture. Wherever people are free to compete, innovate, save and invest, countries prosper. Wherever they are not, they don’t do that.
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The Index shows the prosperity and ingenuity of free Taiwan versus the backwardness of China’s ‘oppressed’ economy. It documents why Israel—despite its ongoing security risks—is thriving while its resource-rich neighbors fall further behind.
The left’s shouting about the cruelty of markets and the rapacity of capitalism masks the truth that the wealth of countries is primarily a matter of policy, not privilege.
Perhaps the most inspiring story from this year’s Index is the economic renaissance underway in Central and South America as they have embraced economic freedom. Chile has long outperformed its neighbors in both freedom and prosperity. Now conservative leaders in Paraguay, El Salvador and especially Argentina are following suit, transforming countries long suffocated by socialism and its attendant corruption.
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Argentina performed the best of all measured economies in 2025, rising from 145th to 106th in the world. President Javier Milei famously saved his country’s sinking economy by cutting taxes, spending and regulations. In Argentina, growth is currently up and inflation is down. The victory of Milei’s party in the midterm elections last fall confirmed his agenda and the proven effectiveness of economic freedom.
Furthermore, the Index understands what the left does not: that economic freedom is true social justice:
“Economic freedom must always be at the service of families, communities and the permanent things… [it] strengthens national security, nourishes civil society and improves the quality of life for all citizens.”
National economic growth is the most inclusive upward mobility policy in the world. It enables the formation of families, not just companies. The surplus supports much more volunteer work than hedge funds. The innovations make our environment cleaner, our streets safer and our world more cooperative.
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Anyone who has any doubts about how much more of this we could use right now just needs to turn on the television. God knows we need as much of it as possible in America. And all we need is for President Trump to stay on his current course. More regulatory reforms, budget cuts, domestic energy development, law enforcement – including deportations – and fair trade will keep our economy vibrant, lower prices and raise wages.
The world needs America’s economy to grow so that we can continue to generate new investment, protect our interests, and serve as a beacon to the world’s struggling people. As disastrous as socialism can be, America is a permanent reminder that there is always hope.
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Our nation is made up largely of people whose ancestors came here with nothing – and built the great economic engine of the world.
The lesson of the latest ‘Index of Economic Freedom’ is that freedom still works and always will for countries with the wisdom and courage to entrust their people with that freedom.
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