How Economic Liberty Can Gain Political Momentum in Israel

While the Jewish state has a reputation abroad as a conservative country—its voters have kept the Likud party in power since 2009, and there hasn’t been a Labor prime minister since 2001—an actual conservative movement in the country is still little more than nascent. In particular, there is scant ideological support for the free-market policies that have facilitated the country’s economic successes. Roger Hertog explains why this should change, and how it might:

The ideal of economic freedom has had a difficult time establishing itself in Israel. Israel was born as a socialist country, with heavy taxation, heavy regulation, and cartels and controls that continue to this day. The Israeli economy consistently suffers from weak growth in many sectors. . . .

The technology sector accounts for 12 to 15 percent of Israel’s GDP, employing 200,000–300,000 people. Israel has more companies listed on the NASDAQ, most of which are somehow connected to this sector, than any other country in the world except for the United States. But the rest of Israel’s domestic economy, which employs about three million people, has grown more slowly. Why is there such success in one part of the economy and not in the other? . . .

[T]he tech sector is principally export-driven, and its entrepreneurs work without much burdensome government regulation and bureaucracy. But a large portion of Israel’s domestic economy is held back by . . . government oversight, unions, price controls, excessive tax regulation, cartels, and protectionism. As with other countries worldwide, these factors slow growth and impede innovation. . . .

To change this, Israelis must learn from the successes of 20th-century American conservatives, who after World War II built a broad-based movement that included economic freedom as one of its bedrock principles:

If conservatism is to succeed in Israel [as] a political force that can change the economic life of the country, disparate groups. . . will need to see that it is in their interest to come together. Israeli conservatives will need to create a unique synthesis that is right for [their] country—a synthesis embracing all aspects of national life, of which economics is only one. The task at hand is especially difficult because much of the elite intellectual life in Israel is quite unsympathetic to any kind of political conservatism.

On the road to conservative victory, ideas and the promulgation of ideas play a vital part. But to prevail, ideas must manifest themselves in the cultural and political processes that will shape Israel’s destiny. That is the challenge facing conservatism in Israel.

Read more at Jerusalem Post

More about: Conservatism, Free market, Israeli economy, Israeli politics, William F. Buckley

Hamas’s Confidence Shows Why Hostage Talks Aren’t Working

Sept. 10 2024

Yesterday, President Biden reportedly met with his advisers to discuss how to achieve a breakthrough in hostage negotiations. Meir Ben Shabbat takes a closer look at what the terrorists themselves are saying:

Khalil al-Hayya, Hamas’s deputy chief in Gaza, reiterated that this issue is merely one of several demands his group has put forward as conditions for a deal. “We stress that any agreement must encompass a full cessation of hostilities, complete withdrawal from the Gaza Strip, including the Philadelphi Corridor and the Rafah crossing [which allow Hamas to smuggle weapons and supplies from Egypt], unimpeded return of displaced persons to their homes, aid and relief for Palestinians, Gaza’s reconstruction, and a prisoner exchange,” al-Hayya stated.

This stance isn’t new. What stood out in its presentation was the self-assurance displayed by the senior Hamas official, during a week when he and his associates were expected to be on edge, fearing repercussions for the killing of six hostages. However, the reaction to this in Israel and the United States prompted an opposite response from them. From their perspective, not only did they avoid consequences for the heinous act, but through it, they managed to escalate tensions and internal disagreements in Israel, while also prompting Washington to consider presenting a framework defined as a “final offer, without room for negotiation.

Hamas assumes that a final American proposal will inevitably come at Israel’s expense. The primary pressure to reach an agreement is already being applied to Israeli leadership. Hamas faces no consequences for prolonging the process, and so long as it holds hostages, it can always resume negotiations from where they left off.

Read more at Israel Hayom

More about: Gaza War 2023, Hamas, U.S. Foreign policy