Last year, the U.S. was ranked 17th, but a steady decline of economic freedom and "rule of law" has dropped the level of freedom, according to the Cato Institute, Fraser Institute and the Swiss Liberales Institut, which created the study together.

Co-author of the report Ian Vasquez told The Daily Caller News Foundation that the steady growth of government and increased regulations of business and labor contribute to the U.S. low rating.

"Since the year 2000, the U.S. has been on a decline in terms of economic freedom," Vasquez told TheDCNF.

The other main reason for the United States' low rank comes from the "rule of law" measure. Vasquez told TheDCNF that increased invasions of privacy through the war on drugs and war on terror have contributed to the decline in freedom.