OPINION:
Quick quiz: Is the world becoming more or less free, economically speaking?
Negative headlines would probably make most people say less, but trend lines show that, despite slow progress, the answer is more. We’re not just referring to lower taxes and lower spending, as welcome as they are. Real freedom means self-governance, which means individual authority over who makes family decisions, and the returns show it consistently and powerfully.
The latest proof arrives in The Heritage Foundation’s 32nd annual Index of Economic Freedom.
Under the steady leadership of Heritage President Kevin Roberts, this commonsense, country-by-country annual benchmark study continues to encourage policymakers around the world to embrace the proven path of economic freedom.
It measures what matters for prosperity: free markets, rule of law, private property rights and limited government. The findings of the 2026 index tell a story of resurgence. The overall score for the United States jumped 2.6 points to 72.8 (on a 0-100 scale), lifting America to 22nd worldwide.
This marks the largest annual gain since 2001 and the biggest improvement among advanced economies.
After five years of decline, pro-growth, deregulatory reforms have reversed the slide, restoring momentum to innovation, investment and opportunity. Mr. Roberts reminds us plainly and succinctly in the preface of the 2026 index:
“Economic freedom is not an end in itself. It is a means to human flourishing — to what the Founders called the pursuit of happiness and what Aristotle described as eudaimonia. Conservatism seeks not merely efficiency, but the good, the true and the beautiful. … Free markets must be part of our message of prosperity. … Yet markets do not exist in a vacuum. Economic freedom must always serve families, communities, and the permanent things — ordered liberty, personal responsibility, and the dignity of work.
“Properly understood, economic freedom strengthens national security, nourishes civil society, and improves the quality of life for all citizens. It is a cornerstone of a healthy society. The Index of Economic Freedom remains one of the most important tools in defending and advancing that cornerstone.”
Consider Argentina. It is truly exciting to witness the most dramatic turnaround taking place there. Speaking at Argentina Week 2026 in New York City, Argentine President Javier Milei proudly cited the index. When Mr. Milei took office, Argentina ranked around 146th worldwide.
Under his reforms — slashing spending, deregulation and stabilizing the currency — the nation has surged nearly 40 points, the strongest gain in the index’s three-decade history, landing (for now) at 106.
“We are not going to settle comfortably at position 106,” Mr. Milei thundered in his signature style. “We are going to keep advancing with the reforms … to continue making Argentina freer … Long live freedom, damn it!”
Mr. Milei’s success is no fluke. It exposes the failure of socialist models across Latin America. Presidents and reformers throughout the region now hail the index as validation that freedom delivers prosperity where central planning collapses. It’s also evident worldwide. Singapore, at 83.9, enjoys a per capita gross domestic product more than double that of repressed economies such as China.
The pattern is clear: Freer nations grow faster, educate better, protect the environment more effectively and reduce inequality.
The index also has utility for entrepreneurs. Our friend Jerry Bowyer, CEO of Bowyer Research, a firm that consults on portfolio construction and asset allocation and much more, recently highlighted that he used the data to help build an international equities index that consistently outperforms other benchmarks.
The financial and societal returns prove the thesis: Freedom isn’t an abstract theory. It compounds real wealth.
As we celebrate the 250th anniversary of “The Wealth of Nations,” Adam Smith’s invisible hand feels more vital than ever before. Individuals exercising authority over their labor, property and family choices create spontaneous order far superior to top-down control.
This self-governance begins at the kitchen table, where parents, not bureaucrats, shape the next generation.
The index reminds us that economic liberty strengthens national security and civil society. It must always serve working families, not exist in a vacuum. America’s resurgence and Argentina’s renaissance show what’s possible when leaders choose empowerment over control.
For more than 30 years, Heritage’s work has added momentum and multiplied it for greater freedom worldwide. Mr. Roberts calls economic freedom a cornerstone of healthy societies. Real success will be measured not just by rankings and markets but also by whether everyday families feel the promise of prosperity.
Freedom works. Leaders such as Mr. Milei prove it, and the world is taking notice.
• Andy Olivastro is chief advancement officer at The Heritage Foundation. Anthony Kim is Heritage’s Jay Kingham research fellow in international economic affairs.
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