Friday, January 1, 2010
Here is some good news to end 2009 and begin 2010.
This last decade was one of solid and healthy economic growth for Israel. Israel has emerged as the leader (together with the U.S.) in technological innovations and their applications. As a result the people of Israel have experienced a steady improvement in their standards of living. Israel in now in the top-ten per capita economies in the world!
Understand clearly, this is a recent phenomenon. Israel's economic performance from statehood until about 20 years ago fluctuated from mediocre to abysmal. What changed?
What changed was its connection to Zionist Socialism and central planning. With great courage and determination a series of political reformers, notably including Bibi Netanyahu, reduced the power of the unions and the Jewish Agency, privatized companies, removed onerous regulations and, most importantly, reduced taxes. The result: more tax revenue, less corruption and tax avoidance, and spectacular economic growth. There is a lot more still to be done, but the results so far are very impressive. Though provocative, perhaps we should embrace a new label - "Zionist Capitalism."
This development may also prove to be a valuable approach to conflict in the region as the Arabs witness these achievements and Israel offers opportunities for mutually valuable trade. It’s happening already, quietly.
And, just this week, an announcement of further tax reductions.
Is Barak Obama paying attention?