Fraser Institute: A Think Tank for Economic Freedom and Limited Government

The Fraser Institute is a Canadian think tank advocating for economic freedom and limited government. Their research shows the benefits of economic freedom and the negative impact of government spending and regulations. They believe that economic freedom is the key driver for progressing health, literacy rate and monetary well-being for females across the globe. The institute is of the opinion that the market place is a competitive one wherein the interference of the government authorities is least. They also confirm that government spending has a major role to play on a country’s economic condition. Fraser Institute favours lower taxes and lesser regulations. Their continuing research is an eye-opener for all.

The Fraser Institute, headquartered at Vancouver is a Canadian public policy think tank and
registered charity and is well known of being conventional and tolerant as well. The institute
is of the opinion that the market place is a competitive one wherein the interference of the
government authorities is least(fraserinstitute.org, 2018). Various researches have been done
which prove that a country which is economically free is bound to perform better than
expected. The Economic Freedom of the World:2017 Annual Report mentions that economic
freedom is the key driver for progressing health, literacy rate and monetary well-being for
females across the globe (Fike, 2018). The research mentions that in most of the countries
women and men are not treated equally, thereby differentiating upon their economic freedom.
Studies have proved that countries whose policies are in line with the economic liberty are
probe to higher investment rate, better income and hence low poverty ratio. It has also been
found out that countries in the top quartile of economic freedom had an average per capita
GDP of $42,463 in 2015, in comparison to $6,036 for the bottom quartile nations (Gwartney
et.al. 2017). Thus these figures clearly show the importance of economic freedom and how
nations benefit out of it.
Further to this, the said institute also confirms that government spending has a major role to
play on a country’s economic condition. The government are trying to cover the deficit
caused by their spending by giving it an economic cover. Such as the deficit faced by the
Alberta Government is not due to low oil prices but is mainly due to the government
spending pronouncements made by the Notley government. The research highlighted that had
the government made judicious spending choices and chosen to adhere to spending
moderation, then fiscal reality would be very high (Fraser Institute, 2018).
The Fraser Institute is very little in favour of the government’s contribution in the
marketplace. The government spending is highly mismatched due to which Fraser Institute
favours lower taxes and lesser regulations. Such as in the case of Alberta, the government and
the public sector employees are paid 6.9 percent more than the private segment for the same
job after taking into account age, time spent at the workplace and such other important
factors. In the private segment wages and salaries are linked to the performance index of the
employees due to which the output received by them is much more than that at the
government institutions. In a private concern there always this pressure that without adequate
gains it is impossible to survive in the business whereas no such pressure exists in a
government company as they are generating their revenues from the huge amount of taxes

being paid by the public. At Alberta, the government is paying wages which is more than that
applicable as per the market and in turn they are increasing the taxes to be paid by people.
Further to this, the research conducted by Fraser Institute believes that due to such misuse of
the public money collected by way of taxes, many families are to compromise on the needs
and the requirements and also the fact that if these amount is not paid to the employees as
higher than market place wages, then the same money could have been used for building
public welfare amenities such as schools and hospitals (Milke,2017). Thus due to such
misuse of public money, the taxes should be lowered down.
Lastly, in the Economic Freedom of the World 2016 Annual Report it is clearly mentioned
that it is the high amount of regulations regarding the market entry and obstruct with the
liberty to connect in deliberate trade hampers the economic freedom. Too much of
interference of the government in the form of various regulations limits the autonomy of trade
in credit, labour and goods market (Gwartney et.al. 2016).
Thus it can be rightly said that the main aim behind set up of Fraser institute is to ensure that
the lifestyle of the Canadian families are better and economically free. The concentrates upon
improvising the quality of life being led by the citizens of Canada and their future generations
as well by limiting the taxes being paid and utilising the same for the welfare of the society as
a whole and also minimising the government regulations so that trade can be conducted
freely. There continuing research is basically an eye opener for all.

REFERENCES:
Fike,R., (2018), Impact of Economic Freedom And Women’s Well-Being, Retrieved from
https://www.fraserinstitute.org/studies/impact-of-economic-freedom-and-womens-
well-being
Fraser Institute, (2018), Fraser Institute News Release : Government spending – not low oil
prices – to blame for this year’s $8.8 billion deficit, Retrieved from
https://globenewswire.com/news-release/2018/03/27/1453475/0/en/Fraser-Institute-
News-Release-Government-spending-not-low-oil-prices-to-blame-for-this-year-s-8-8-
billion-deficit.html
Fraserinstitute.org., (2018), Welcome to the Fraser Institute, Retrieved from
https://www.fraserinstitute.org/about
Gwartney,J., Lawson,R.A., Hall, J.C., Murphy,R., Fike,R., Grant,R.J., McMahan,F.,
Soysa,I.D., & Vadlamannati,K.C., (2017), Economic Freedom of the World: 2017
Annual Report, Retrieved from https://www.fraserinstitute.org/studies/economic-
freedom-of-the-world-2017-annual-report
Gwartney,J., Lawson,R. & Hall,J., (2016), Economic Freedom of the World: 2016 Annual
Report, Retrieved from https://iea.org.uk/wp-content/uploads/2016/09/EFW_2016.pdf
Milke,M., (2017), Don’t defend compassion by government spending, Retrieved from
https://www.fraserinstitute.org/article/don%E2%80%99t-define-compassion-
government-spending