Regulating credit, employment and commercial activity

Whenever regulation prohibits the operation of markets and interferes with the freedom to exercise voluntary exchange, it is thus a limitation on economic freedom.

This index includes regulatory restrictions that limit freedom of exchange and that relate to credit, employment and product markets.

It is noteworthy that sterile bureaucratic procedures restrict the expansion of businesses and projects and the ability to create jobs.

The first component reflects conditions in the domestic credit market, where individuals must have the power to make their own decisions about credit markets and be able to deal freely with whatever institutions they choose. These components are designed to measure whether the government allows free markets to determine The possibility of lending or whether this is subject to political considerations and whether or not there is a possibility to lend to eligible individuals and businesses that seek to borrow in a free climate quickly and at limited costs.

There are many types of regulations concerned with regulating the relationship between employment and the market that infringe on the economic freedom of employees and business owners. One must enjoy the freedom to work for whomever he wants, and business owners must have the freedom to use whomever they want from the workers, and the variables affecting this relationship include the difficulty of hiring labor Freezing working hours, isolation controls and costs, and compulsory recruitment.

Business regulations restrict economic freedom as do credit and labor market regulations, and individuals must be free to open or close businesses at times of their own choosing. The ability of regulatory restrictions and bureaucratic procedures to undermine the establishment and closing of businesses.