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Canadians today have less economic freedom than they did 50 years ago, reflecting a troubling decline in individual financial autonomy and opportunity.

Once a leader in economic freedom, Canada now ranks lower than many of its global peers due to increased government intervention, regulation and taxation that threatens to stifle innovation and economic growth. The latest data from the Fraser Institute’s 2024 Economic Freedom of the World report reveals this concerning trend that Canadians can’t afford to ignore.

Matthew Mitchell, senior fellow at the Fraser Institute and contributor to the report, calls economic freedom the bedrock of prosperity. “Canadians should understand that lower levels of economic freedom depress investment, hamper economic growth, and lead to less economic opportunity for workers,” he writes.

An individual's right to decide what to buy, where to work and whether to start a business all form the basis of economic freedom, further reflecting how open a country is to trade, how burdensome its taxes and regulations are, the level of government spending, and the stability of its currency. Without economic freedom, innovation stagnates, growth slows, and prosperity becomes a distant dream.

This is exactly what many Canadians are experiencing firsthand in 2024, as inflation and the skyrocketing cost of living take a heavy toll on their pocketbooks.

According to the report, Canada’s score has fallen significantly over the past decade, with the country now ranking 8th globally — three spots behind the United States which ranked 5th.

While market-friendly countries like Hong Kong, Singapore, and Switzerland top the list, Canada is falling behind due to rising government size, higher taxes, and increased red tape.

These shifts, driven by increased government spending and market intervention, are stifling growth and innovation. With worsening legal protections, higher taxes, and a growing regulatory burden, Canada risks losing its global competitive edge, resulting in fewer jobs, lower investment, and declining living standards.

While government proponents argue that higher regulation and spending can promote equity and fairness, the evidence shows that countries with greater economic freedom experience higher growth rates, lower poverty levels, and improved well-being for their populations.

“And after decades of research, we now know that when people are more economically free, they enjoy higher standards of living,” said Mitchell. “Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives.”