Many Israeli Jews dream to emigrate. Tradition and relatives are not the sustainable bonds that tie people to their country. Soviet Jews felt affinity to the USSR so that few attempted to leave it, but deteriorating economic situation since 1986 prompted them to emigrate en masse. Even so, most Soviet Jews chose Israel as the last resort when they couldn’t get into the US, Australia, or Germany. Israeli state brainwashed young Israelis to eradicate religiosity and radical nationalism, and left the generation with no strong attachment to the land of Israel. Jews of the Diaspora look at Israel with awe, but for many Israelis the Promised Land is banality.

Far from all Israelis want to fight for the land. Still fewer want to fight for the country which tolerates – depending on the view – religious Jews or the Arabs. Perpetual government vacillations discourage the rest. No people could be asked to live in war zone for decades.

Bereft of ideals, faced with hostile Arab neighbors, totalitarian government, insecurity and draconian taxation, many Jews emigrate. Most conservative estimates put the total number of emigrants at 500,000.
Economic prosperity is the only option to prevent massive emigration of Jews. To that end, three things are indispensable: de-regulation, de-militarization, and privatization of social security.

Israel is more bureaucratized than the USSR, if only because the latter had virtually no private economy to bureaucratize. Talmudic penchant for legislation juxtaposed on Soviet socialist background and on the concept of strong government produced Israeli bureaucratic nightmare in which the businesses don’t survive. Only oligarchs and well-connected kibbutzim cut the red tape. Regulation and licensing should be fully replaced with bonding. Anyone who purchased liability insurance with full coverage should be free to engage in any business. Insurance companies would evaluate the risks through private experts.

Israeli defense expenditures currently hover around 10% of GDP which is not high by our historical standards. The figure, however, is drastically understated. It doesn’t include GDP losses from conscription, brain drain to the military industry, loss of investment because of insecurity, lands allocated to the military, and many other factors. Israel must fully rely on nuclear weapons in confrontations with regular Arab armies, and dismiss her large conventional forces. Nuclear retaliation should be directed against the enemy population centers rather than the battlefield where the nuclear cloud would affect Israel. Substantial dismantling of regular Israeli army would make nuclear deterrence extremely credible, discourage Arabs from attacking Israel, and obviate the need for actual employment of Israeli nuclear weapons.

Ethnic-blind democracy has to offer the same benefits to Arabs as to the Jews. That produces absurdity of subsidizing the Arab demographic explosion. The social security money is huge for poor Arabs, and gives them an important stimulus to breed. Jewish National Fund demonstrates a way around the problem. JNF owns Israeli land and, being a private entity, leases it as it sees fit, thus to the Jews. A similar entity could take care of Israeli social security. Non-government entity would be less wasteful and susceptible to political blackmail and lobbying than the current social security system.

Israel doesn’t need economic reforms and irrelevant changes. Rather, the existing economic obstacles should be removed.