In Israel, socialism squeezed out the middle class. The oligarchs and the politicians are rich, while the Jewish population is dirt poor. Israelis work for 15-20% of American or European wages in an overregulated economy controlled by the government and the police.

Small systems are easy to distort. Monopolies are especially harmful in isolated regional markets. Israel, a small post-socialist economy, is extremely vulnerable to monopolization, collusion, and oligarchy. Income is much more stratified in Israel than in other civilized countries; the Israeli middle class is dirt poor. The oligarchs, few and well connected politically, profit from government favors and concessions. Other small economies, like Hong Kong or Switzerland, also have relatively few mid-size businesses, but the Israeli level of corruption and regulation is especially conducive to concentrations of capital on the top, among the oligarchs. They depend on the government for profits and in turn support it with media campaigns and political donations.

Israel needs across-the-border economic deregulation to break the powerful grip of the oligarchs and the governing clique. Small economies only survive as free market endeavors. Any significant degree of regulation guarantees Israel both a pitiful economy and suicidal leftist tendencies.