IN THE MARKETS: Wealth and freedom go together, for the most part

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IN THESE trying times of market turmoil, high unemployment and great inequality, economic freedom is touted as the panacea for all the worlds wrongs by outfits such as South Africas Free Market Foundation (FMF) and the USs Heritage Foundation.

They argue and I largely agree that if you leave people to their own devices and allow them to make the most of their talents and abilities and free them, as far as possible, from the encumbrances of red tape, they will do well individually. Society will then, as a whole, be better off economically.

But is this hypothesis borne out by the data?

The Washington-based Heritage Foundation has a clear ideological founding principle, encapsulated in the opening statement on its website which states that "when institutions protect the liberty of individuals, greater prosperity results for all".

The FMF has a far less impressive website, but its tag line of "progress through freedom" says pretty much the same thing.

To test the hypothesis, I use per capita income as a rough proxy for individual wealth and because I have only 750 words to make my argument, I ignore for the time being inequality and some of the "happiness" indices that get touted from time to time. The 10 wealthiest countries by per capita income according to the International Monetary Fund are: Qatar ($102,211), Luxembourg ($79,785), Singapore ($60,410), Norway ($55,009), Brunei ($54,389), the US ($49,922), the United Arab Emirates (UAE) ($49,012), Switzerland ($45,418), Canada ($42,734) and Australia ($42,640).

This is a fairly eclectic mix of liberal democracies, state-dominated autocracies and monarchies. But how do they fare when it comes to granting their citizens their economic freedom?

According to Heritages 2013 index, compiled in partnership with The Wall Street Journal, five of these wealthiest countries are in the top 10 economically free countries: Singapore (2), Australia (3), Switzerland (5), Canada (6) and the US (10). This implies a link between economic freedom and wealth, but no absolute correlation. But does economic freedom have other benefits too? Are people in wealthy countries, for example, more tolerant than their counterparts in less well-off parts of the world?

From my secular and liberal perspective, I hope so. It would be awful if people took the freedoms they enjoyed and then failed to share these with others who were different from them. Certainly in countries like the US this is the case. Even in the parts of the so-called Land of the Free where the religious right rules, the state doesnt sanction the abuse of the rights and freedoms of dissidents, at least within its own borders.

With some relatively rare exceptions, apart from some strident rhetoric and book burning, the haters tend to not act on their dislike of other faiths or lifestyles.

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IN THE MARKETS: Wealth and freedom go together, for the most part

Freedom Child emerges as Belmont's 'buzz horse'

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ELMONT, N.Y. For all the prestige that comes with its status as an American classic, the $1 million Belmont Stakes loses some of its edge with the absence of Triple Crown hopes.

Despite having both Kentucky Derby winner Orb and Preakness Stakes victor Oxbow in the mix, Saturday's 145th running of the 11/2-mile race lacks some sizzle.

What has emerged to some surprise is an upstart entrant attracting buzz during preparations for this year's "Test of the Champion."

With every trip to the track Freedom Child has made leading up to his scheduled start in the Belmont Stakes, the Malibu Moon ridgling has made an admirable case as to why 13 other challengers could end up in his wake Saturday evening.

One could argue Freedom Child's morning outings have been the most impressive of the Belmont contenders with his gallops routinely fluid with just the right amount of aggressiveness.

Adding to his respect is the prospect of the Belmont track being in the same sloppy condition Saturday that it was May 11 when he freaked over it during his 131/4-length, gate-to-wire win in the Grade II Peter Pan Stakes.

While big wins over sealed, wet tracks can be among the most deceiving when trying to judge true form, Freedom Child's front-running style something he'll need when he breaks from post No. 2 makes him an X-factor in a race that tactically hinges on pace.

"If I'm managing another horse in the field, my thoughts right away, they're going to go to Freedom Child especially if I'm a horse who will be forwardly placed," said Terry Finley, founder of West Point Thoroughbreds, which co-owns Freedom Child along with St. Elias Stable and his breeder, Spendthrift Farm. "If I'm a rider or a trainer and I look at the Peter Pan and especially if it's sloppy on Saturday, I'm probably a little concerned if I would make the right decision.

"If he gets a shot to get comfortable and get framed up down the backside ... we're going to be smiling. Then it's just going to be a matter if he's good enough and if one of the other ones doesn't have a really good day."

The more positive chatter surrounding Freedom Child the more it helps his connections get over the Grade I Wood Memorial on April 6.

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Freedom Child emerges as Belmont's 'buzz horse'