Thanks to Free Enterprise, U.S. Cities Have Larger Economies than Most Countries
Acton Institute Powerblog

Thanks to Free Enterprise, U.S. Cities Have Larger Economies than Most Countries

In their latest report, the World Economic Forum ranks the U.S. economy as the world’s third most competitive, behind only Switzerland and Singapore. But as James Pethokoukis notes, what this really means is that the “US is the most competitive large economy.”

Too often we forget just how “large” the U.S. economy really is—and why it matters. We prefer to compare things that are semantically similar, so we lump the U.S., Switzerland, and Singapore under the category of “countries.”

But the U.S. economy is so big we could, for economic comparisons, consider it a collection of city-states. That makes more sense since the GDP of Switzerland (85 billion) is comparable to the GDP of the Hartford, Connecticut metropolitan area (also 85 billion), and the GDP of Singapore ($308 billion) is comparable to the Seattle-Tacoma-Bellevue, Washington area ($301 billion).

Indeed, as this chart produced by AEI shows, the GDP of U.S. metro areas is comparable to entire countries.

GDPMetro

If our cities were countries they’d be among the largest economies in the world: New York would be the 12th, LA would be the 17th, and Chicago would be the 21st largest. So why does this matter? Because, as Mark J. Perry says,

It’s a demonstration that “free market capitalism is the best path to prosperity” because it was largely free markets and capitalism that propelled the nation from being a minor British colony into an economic superpower and the world’s largest economy, with dozens of metro areas that produce the same amount of economic output as entire countries.

Free markets—even in the limited form we have in this country—have unleashed an incredible level of prosperity in the U.S. and led to an enormous increase in human flourishing. Imagine what it could do for the rest of the world, if they’d only give free enterprise the opportunity.

 

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).