The Economic Freedom of North America report from the Fraser Institute has found that America's most significant inequality problem is about rules, not income. The report measures how much freedom individuals have to make economic choices and evaluates states across three areas: government spending, taxation, and labor market regulation. States like New Hampshire, Tennessee, South Dakota and Texas consistently rank near the top due to light fiscal burdens and flexible labor markets. However, New Mexico now ranks last among all 50 states. The study suggests that even a modest 10% improvement in economic freedom could raise average family incomes by roughly $10,000 per year.