Israel’s Economic Miracle
Most visitors come for the history, but Israel’s economy is also something to marvel at.
Where the magic of mainstream macroeconomics happens.
Photographer: Bloomberg/BloombergMany visitors to Israel come for its historic and religious wonders, while others view it through the prism of political conflict. I am currently visiting Israel, and I’d like for you to ponder it from another angle: Israel’s 72-year history is a pretty spectacular example of economic science getting it right.
In the last half century or so, Israel went from being a relatively poor country to one of the 25 richest in the world, as measured by per capita income. Israel has done this largely by pursuing trade, integration into the global economy, liberalization of its economy, and heavy investment in the tech sector and in startups, often with government support. Israel still has some problems with living standards and income inequality, but it is a classic case of neoliberalism — at least in the economic sphere — mostly working out as planned.