According to a recent study, Washington ranks 31st out of 50 states in economic freedom. “The U.S. Economic Freedom Index: 2004 Report,” published by Pacific Research Institute (PRI) in association with Forbes magazine, is featured in the newly released “Best Places” issue of Forbes.

The Index ranks America’s 50 states according to how friendly — or unfriendly — their governments are toward free enterprise. The report factors more than 140 variables – from taxes to environmental regulations to tort laws to property rights.

The rankings are based on five types of government intervention in markets: fiscal, regulatory, judicial, size of government, and welfare.

Many of the results are quite surprising. For example, Kansas ranks highest, while New York ranks lowest. The complete rankings are listed on PRI’s website: www.pacificresearch.org.

“Washington’s low ranking is driven by its poor fiscal responsibility (36th overall), and excessive size of government (40th)” said Washington Policy Center (WPC) President Daniel Mead Smith. “These numbers show why WPC’s Small Business Project, which examines roadblocks to small business success, is necessary.”

The states with the most economic freedom tend to be in the Great Plains and Rockies. As a result, this region is developing prosperous centers of high-end services and information technology. The Northeast and Upper Midwest are most restrictive. Consequently, businesses and consumers are suffering there.