"When institutions protect the liberty of individuals, greater prosperity results for all."

-- Adam Smith, "The Wealth of Nations"

The United States could do no better than 8th place on the 2010 Index of Economic Freedom, jointly published by The Heritage Foundation and The Wall Street Journal.

And if Barack Obama and Congressional Democrats have anything to say about it, the U.S. could tumble further down on the list.

For the 16th consecutive year, Hong Kong ranked No. 1 as the world's freest economy, according to the 2010 Index of Economic Freedom.

Hong Kong's "economic freedom score" is 89.7, making its economy the freest among the 179 countries ranked. Singapore retains the second place ranking, followed by Australia and New Zealand. The United States ranks 8th place - behind Canada!

Here's what the authors of the Index had to say about the U.S.:

Its score is 2.7 points lower than last year, reflecting notable decreases in financial freedom, monetary freedom, and property rights. The United States has fallen to 2nd place out of three countries in the North America region.

The U.S. government's interventionist responses to the financial and economic crisis that began in 2008 have significantly undermined economic freedom and long-term prospects for economic growth, according to the authors. "Economic freedom (in the United States) has declined in seven of the 10 categories measured in the Index."

The 2010 Index measures the degree of economic freedom of 179 economies worldwide by assessing 10 factors: Business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labor freedom.

Why is Hong Kong ranked No. 1?

The Index says Hong Kong's "competitive tax regime, respect for property rights, and flexible labor market, coupled with an educated and highly motivated workforce, have stimulated an innovative, prosperous economy." The Index also notes that Hong Kong's legal and regulatory framework for the financial sector is "transparent and efficient."

You can download the entire 2010 Index of Economic Freedom for free at http://www.heritage.org/index/