Full Breakdown
New Hampshire Maintains Title as Freest State in North America for 24th Year
12/4/2025, 2:13:52 AM
Overview of Economic Freedom Rankings
New Hampshire has once again been recognized as the freest state in North America, according to the 2025 Economic Freedom of North America report released by the Josiah Bartlett Center for Public Policy in collaboration with Canada’s Fraser Institute. This marks the 24th time New Hampshire has achieved this distinction, scoring 8.34 out of 10 based on data from 2023, which evaluates government spending, taxation, regulations, and labor market restrictions. Tennessee follows closely in second place with a score of 8.30.
Key Findings and Rankings
The report highlights that New Hampshire excels in government spending and taxation but is closer to the national average regarding labor market freedom. The top five freest states include:
1. New Hampshire (8.34)
2. Tennessee (8.30)
3. South Dakota
5. Idaho
Conversely, Puerto Rico ranked lowest overall with a score of 1.74, while New Mexico was the least free U.S. state, followed by New York, Hawaii, and California.
Implications of Economic Freedom
Andrew Cline, President of the Josiah Bartlett Center, emphasized that New Hampshire's ranking reflects the state’s commitment to economic freedom, which has fostered growth and prosperity. He noted, however, that other states are aggressively pursuing similar titles, indicating a competitive landscape. Matthew Mitchell, a senior fellow at the Fraser Institute, stated, “People are more economically free when they are allowed to make more of their own economic choices,” underscoring the link between economic freedom and individual well-being.
Criticism and Areas for Improvement
Despite its top ranking, the report suggests that New Hampshire's labor market regulations may require reform to maintain its competitive edge. Critics argue that while the state performs well in spending and taxation, it must address labor market freedom to prevent other states from overtaking its position.
Official Statements
Governor Kelly Ayotte expressed pride in New Hampshire's ranking, stating, “New Hampshire is a beacon of economic freedom and opportunity for the nation.” She reiterated the state's commitment to maintaining a favorable environment for residents and businesses alike.
Verbatim Quotes
- “Economic freedom has made New Hampshire an engine of growth and prosperity in the Northeast,” — Andrew Cline, President, Josiah Bartlett Center for Public Policy
- “The link between economic freedom and prosperity is clear.” — Dean Stansel, Economist, Southern Methodist University
Conclusion
The 2025 Economic Freedom of North America report reaffirms New Hampshire's status as a leader in economic freedom, while also highlighting the need for ongoing vigilance and reform in labor market policies to sustain its competitive advantage against other states. As the landscape of economic freedom evolves, New Hampshire's policymakers will need to adapt to maintain their top position.
