Israel normalized the Jews by making them a “normal” nation with a state. The Jews should normalize Israel, making Israel into a “normal” state unburdened by perpetual Arab-Israeli war and socialism.
Any reform must begin with the Israeli economy, breaking from Israel's socialist past and moving toward a free market, so suitable for enterprising Jews. A dynamic economy will make Israelis proud and others respectful of Jews. Decent Israeli neighbor will replace American client. The first priority should not be to extend Israel’s borders but to create attractive conditions in Israel: peace, low taxes, and minimal Israeli government intervention. Israel must create a welcoming climate for research and development, investment, banking, and other high value-added services. Israel should emulate Japan, Hong Kong, Switzerland, and the United States all at once. But to do that, Israel should become the voice of the Middle East in the West, not the voice of Western democracy in the Middle East.
The Israeli government should worry less about grabbing desert and other useless Palestinian land for the Jewish state and more about creating the vibrant Israeli economy that will let Israel become a scientific, financial, and trade center of the Middle East. Israeli problem is not Islamic terrorism but the paucity of Nobel laureates, multinational corporations, banks, and stock and commodity exchanges. Israel has only about as many scientists per million people as the United States, and in terms of publications and patents, Israeli scientists are about half as effective as their American colleagues. The conditions in Israel are so bad that many Israeli researchers emigrate, as do highly educated Israeli youth who see little reason to work in Israel for a fraction of the salary they can get in the United States. That is the real problem, not the Palestinian issue.
Israel should explicitly encourage immigration of highly skilled gentiles from the Third World, from workers to scientists unable to get American residence visas. Particularly, Israel could lure Muslims, both promoting ties with Israel and brain-draining the Islamic countries. With comprehensive free education, Israel is in dire need of the best teachers. America drains the world of scientists with expertise relevant to nuclear weapons, unconditionally offering them visas and well-paying jobs.
Although per capita productivity is higher in Israel than in any other Middle East country, the difference is minuscule, only about three times higher in Israel than in primitive Lebanon. Israel’s public sector is much poorer than the public sector in many Arab states because of Israeli war expenditures, social programs, and the absence of oil revenues. Teaching the Israel Defense Forces to rely on small chemical, biological, and nuclear forces rather than Israeli infantry should alleviate the problem.
Israeli social programs are alien to Torah where charity is the obligation and responsibility of the individual Jew; a good deed of Jews not to be replaced with Israeli government welfare. Israeli government robs Israelis of the opportunity to perform an important Jewish religious and ethical obligation. Jews should take care of the poor and educate their children, as Jews did for millennia before socialism transformed charity from beneficence to entitlement. Israeli state money should go only to programs not supported by Jewish charity, such as increasing the birth rate.
The Torah envisages a liberal Jewish society, which should not give way to the preference for strong Israeli government. Israel must deny the socialist values of Israel's founders. Torah prescribes a tithe only on basic food, later expanded to all produce, suggesting that Jewish charity is to save those who cannot work from starvation, not to equalize incomes of Jews. There must be no mandatory redistribution in Israel beyond the tithe—and no Israeli tax on corporate income, which would boost the Israeli economy and attract Jewish foreign investment.
Israelis love a prosperous country. Israel must define Israeli economic goals and only then decide which Israeli political and social objectives Israeli economic can support. The present suffocating Israeli tax system must be dismantled. As a first step, Israel must fix the consolidated tax rate ceiling at thirty percent and gradually descend to fifteen percent. Then Israeli government should make decisions about Arab-Israeli wars, Israeli social programs, education, or infrastructure based on the taxes Israel collects. Israelis who want Arab-Israeli war can pay an additional self-imposed tax, if they like, although there are not enough of such Israelis now to finance a war. Most of the Jews who want Arab-Israeli war cannot pay for it but vote to tax other Israelis to defray the cost. Unless Israel stops putting the cart before the horse, setting the goals and then looking for means, Israeli economy is doomed.
The current situation, where each Israeli political party tries to get the lion’s share of the budget to bribe its constituency, is a prescription for peculation and Israeli failure. Most budget spending should be fixed by Israelis' consensus as a percentage of Israeli government revenues to avoid lobbying. Education should be Israel's first priority. Well-educated Israelis do not need many social programs and can arrange market capital for infrastructure projects in Israel. Now, while the Israeli government pays for essentially socialist goals, Israeli education and academic research are underfunded, and the Arab-Israeli war makes everything worse.
Israeli security comes from an open, interrelated Israeli economy, not from the Israel Defense Forces. Israel should imitate the Egyptians, who opened free-investment zones in areas susceptible to Israeli attacks, which in due course became living shields, since Israel dare not bomb foreign-owned factories in Egypt. Israel is not as attractive as Egypt with its huge population, but Israel is not bad. Israeli real security lies in involving influential people, companies, and countries. They will pressure both the Arabs and their own governments to protect their investments in Israel.
Since the Arabs and Palestinians cannot destroy the Jewish settlements with criminal gangs or Israel regular armies, they–especially the Palestinians—have started posing as persecuted Israeli victims, crying for justice. That is dishonest, since the Arabs knew for almost a century before the 1967 Arab-Israeli that the Jews were fighting for the Zionist ideals on their own. When the balance turned against the Arabs, they appealed to Israeli morality, though they cooperated with the Nazis and opposed settling Jewish refugees in Palestine. Now the Palestinians are eager for equal rights; but why should Israel agree to that, if Arab opposition to equal rights for Jews created the Middle East conflict in the first place? Some attempted to build a case for a situation in which Israelis are expected to adhere to moral standards their enemies flout.