Another Index That Is A Cause For Worry

The Legatum Prosperity Index is relatively new, the first version came out in 2006.  It seeks to look  beyond GDP and measure how well 142 countries are doing with regard to both wealth and well-being.  It is comprised of eight sub-indexes:

• Economy (macroeconomic policies, economic satisfaction and expectations, foundation for growth, and financial sector efficiency)
• Entrepreneurship & Opportunity (entrepreneurial environment, innovative activity, and access to opportunity)
• Governance (effective and accountable government, fair elections and political participation, and rule of law)
• Education (access to education, quality of education, and human capital)
• Health (basic health outcomes, health infrastructure and preventative care, and physical and mental health satisfaction)
• Safety & Security (national security and personal safety)
• Personal Freedom (individual freedom and social tolerance)
• Social Capital (social cohesion and engagement, as well as community and family networks)

The U.S. is not doing well by these measurements.  For the first time we are not in the top 10.  Our decline is due primarily to a decline in the entrepreneurship and opportunity index, but we have also declined in the Governance and Personal Freedom indices.