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In the News: Freedom and Entrepreneurship – New Evidence from the 50 States
The Mercatus Center released a new study on the correlation between freedom and entrepreneurship in the United States. Across the board, the study found that states with policies consistent with economic freedom, such as low, broad based taxes and minimal regulations encouraged more entrepreneurship and innovation.
Previous research has demonstrated that “rules of the game” favoring lower taxes and limited regulation—as measured by economic freedom indices—encourage entrepreneurship. Studies have found similar results both in comparisons across the states and in comparisons across countries. “Freedom and Entrepreneurship: New Evidence from the 50 States” uses an index of freedom, the Mercatus Center at George Mason University’s Freedom in the 50 States by Will Ruger and Jason Sorens. The study confirms earlier results: economic freedom permits higher levels of entrepreneurship, as measured by the creation of new businesses.
Read the entire study here.