Of course, no country in the world is completely capitalist; in the United States, for example, less than two-thirds of resources are allocated by the private sector, while the rest are allocated by federal, state, or local governments. At the other end of the spectrum, even in Communist countries such as Cuba, Vietnam, and North Korea, markets play at least some role in allocating resources.

Despite a few ambiguities, then, it is possible to measure the degree of capitalism (or, as some would term it, economic freedom) in each country around the world. Doing so yields measures that seem to correspond reasonably well with what many people would think is true about the economies of those countries.

For example, using the measures constructed by Canada’s Fraser Institute, Hong Kong’s economy is rated the most capitalist, while the United States is sixth. Singapore, Switzerland, New Zealand, Canada, the United Kingdom, and Australia are other nations whose economies are judged among the ten most capitalist in the world. If you know much about economic prosperity around the world, you will be aware that these countries are also among the world leaders in real per capita income. Indeed, the association of capitalism with prosperity is everywhere quite strong.

This story of human progress has been uneven across countries. Europe, North America, and a few other locations have witnessed the greatest increases in real per capita income and the greatest decreases in poverty. By contrast, the standard of living and the extent of poverty in many African nations have changed little over the past 250 years.