Around the world, nations stand at a crossroads. Whether they choose the path of â as President is doing in the United States â or socialism will determine not only their material prosperity, but the security and flourishing of their people.
Thats the core finding of the Heritage Foundations just-released “2026 Index of Economic Freedom.” Pro-growth policies are an investment in the people who make nations strong, resilient and prosperous.
That is certainly the approach President Trump took in 2025. Setting the stage for Americas comeback and paving the way for greater economic dynamism, his policy choices arrested the precipitous decline of Americas economic freedom. Americas Index score for President s final year in office was its lowest ever.
One critical, unambiguous lesson of the Index over the past decades is that what really matters is the direction and orientation of policy â that is, the change at the margin.
Driving our post-Bidenomics surge were lower inflation, fiscal reforms and investment freedom, all of which spurred . Contrary to elite handwringers inside the Beltway, no one should be surprised. Lower taxes and fewer, fairer regulations have always boosted dynamism, incentivized entrepreneurship, and sharpened Americas competitive edge.
This has been the consistent finding of the Index for the U.S. and the world for decades. Once again in the 2026 Index, nations with greater economic freedom, like Singapore, Switzerland and Ireland, enjoyed high incomes, innovation and institutional strength.
And yet, the world remains mired in narrow-minded, short-sighted Marxist superstitions about political elites ability to spend their countrymens hard-earned money better than they can spend it themselves.Â
As the Index reports, socialisms Washington Generalsâesque losing streak continues to span ever-growing chasms of time, geography and culture. Everywhere people are free to compete, innovate, save and invest, nations thrive. Everywhere theyre not, they dont.
The Index shows the affluence and ingenuity of versus the backwardness of Chinas “repressed” economy. It documents why Israel â despite its permanent security risks â prospers while its resource-rich regional neighbors fall further behind.
Leftist shrieking about the cruelty of markets and the rapacity of capitalism masks the truth that the wealth of nations is mostly a matter of policy, not privilege.
Indeed, the most inspiring story of this years Index may be the economic renaissance underway in Central and South America that have embraced economic freedom. Chile has long outperformed its neighbors, both in freedom and prosperity. Now, conservative leaders in Paraguay, El Salvador and especially Argentina are following its lead, transforming nations long strangled by socialism and its attendant corruption.
Argentina had the best performance in 2025 of any economy measured, climbing from 145th to 106th freest in the world. President Javier Milei famously rescued his nations foundering economy by . In Argentina today, growth is up and inflation is down. Mileis partys victory in last falls midterm elections vindicated his agenda and the time-tested effectiveness of economic freedom.
Moreover, the Index understands what the Left does not â that economic freedom is true social justice:
“Economic freedom must always serve 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 businesses. Its surplus supports far more volunteerism than hedge funds. Its innovations make our environment cleaner, our streets safer and our world more cooperative.
Anyone doubting how much we could use more of that right now needs only to turn on a televis
