Tue Oct 2nd, 2007 at 07:55:58 AM EST
Hit and run diary on the topic of "there's more than one way to skin a cat."
Dani Rodrik reports that the libertarian Cato Institute has just released its annual report on the Economic Freedom of the World.
Why should you care? Well, take a look at their own data on the relationship between economic growth and freedom:
Damn reality is so complicated - Colman
As Rodrik points out:
. . . there is no determinate relationship.
How do we make sense of this?
. . . What the second picture reveals is the tremendous variance in economic performance among countries that pass a minimum threshold of market-orientedness.
In these countries, the pursuit of ever freer markets is rarely the most appropriate government strategy. The binding constraint often lies elsewhere, and may involve more government rather than less.
But of course we already knew that. I just love it, though, when the other side makes our own case for us.