If economic freedom were a stock, analysts would call it boring — and then quietly recommend buying it anyway.

For decades, states that limit government growth, keep taxes low and predictable, and allow labor markets to adjust have outperformed their peers on jobs, incomes, and growth. This is not fashionable economics. It doesn't promise quick fixes or dramatic announcements. It just works. And the latest Economic Freedom of North America (EFNA) data published by the Fraser Institute show that it still does.

The EFNA index evaluates states using the latest data (2023) across three simple but powerful dimensions: how much the government spends relative to income, how heavy and complex taxes are, and how flexible labor markets remain. Nothing exotic. No ideological scoring. Just the institutional rules under which people live. Those rules matter because they shape incentives. 

When government grows faster than the economy, something else must shrink. When taxes are steep or complex, labor and capital shift from production to avoidance. When labor rules make it harder for employers and employees to contract, hiring slows and labor markets soften. 

None of this shows up overnight. But it shows up reliably. You can see it in how states behave — and how people respond.

One limitation is worth acknowledging. The EFNA index measures how heavy taxes are, but not yet how complex they are. Complexity matters because it raises compliance costs, increases uncertainty, and gives large firms an advantage over workers and small businesses. 

The EFNA authors are considering ways to add complexity to the index. When added, complexity would likely reinforce the existing findings rather than overturn them.

The incentives measured by the EFNA index are clearly reflected in state outcomes. Take Vance's home state of Texas, which ranks fourth nationally. 

Texas didn't become an economic magnet by offering clever incentives or chasing headlines. It did it by staying boring. No personal income tax. Relatively flexible labor markets. A business climate that allowed firms to expand without asking permission. 

The result? More than two million net jobs added since 2019, and real output growth that has consistently beaten the national average.

But here's the plot twist: Texas has stopped climbing in the rankings. Why? 

Because state and local spending started growing faster than population growth and inflation, and property taxes quietly did the rest. The Texas model still works — but the state has begun to retreat from it.