Government cheese for everyone! The London-based Legatum Institute has published its Prosperity Index and, for the first time, the United States has fallen out of the top 10, landing in the 12th position. In the video below, the Institute outlines how it determines the order of the ranking, which takes into account a number of factors including education and health.
Among the issues that pushed the US down the list were the increased cost of becoming an entrepreneur, the poor state of our “health outcomes” when compared with our health expenditures and the decline in the government approval rating.
Taking the election into account, the Institute says, “As the US struggles to reclaim the building blocks of the American Dream, now is the time to consider who is best placed to lead the country back to prosperity and compete with the more agile countries that have pushed the U.S. out of the top ten.”
In questioning the viability of the American Dream, the group is in line with what we heard Nobel Prize-winning economist Joseph Stiglitz say at The Economist‘s Buttonwood Gathering a couple of weeks ago. “Americans believe in equality of opportunity. The data suggests that that has become a myth,” he said at the time.
This is the sixth year for The Legatum Prosperity Index, which looks at 142 countries to compile the rankings. The top three countries are all Scandinavian — Norway, Denmark and Sweden, in that order.