How Israel Got So Rich While Surrounded By Enemies

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Despite geographical challenges, hostile neighbors, and limited resources, Israel has become one of the world's wealthiest and most advanced economies. This video explores how Israel overcame economic failure, what drives its growth, if its success can be replicated, and its future prospects.
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[@midnightflare9879]

“Let me tell you something that we Israelis have against Moses. He took us 40 years through the desert in order to bring us to the one spot in the Middle East that has no oil.”

[@LucasAlves-yb5lr]

😂😂😂

[@mensrea1251]

When God asked Moses which land he wanted for his people, Moses intended to say “Canada” but he had a stutter and it came out “Canaan”…

[@RodrigoOliveira-tb7zf]

What do you mean it has no oil? It has Lebanese oil, Syrian oil, Egyptian oil, and even Azerbaijani oil

[@freddy4603]

In a way, he dodged a bullet

[@CornishCreamtea07]

To make matters worse he didn't think to bring along Volvic water.

[@joseangelmedinacornejo6362]

As a Venezuelan EE fan, I find it sadly hilarious that my reaction to every problem shown in every video is “oh we have that too” 😅

[@santosmedina4248]

Jajajajajaj y como uno argentino también!

[@evangelistajohnfrancis5704]

Sa True

[@roboto12345]

Ya somos dos....viva Bolivia lol

[@youknow_nothing]

Argentinian here, i have the same thought on every video 😅

[@wickathou]

Bro yes!

[@kylelaw7210]

It’s impressive what a culture that values intelligence and a strong work ethic can do for an economy.

[@eljangoolak]

We have that culture in Iran but also one of the highest brain drains in the world. Government is the final deciding factor

[@georgebruv3955]

Yea plus apartheid and literally genociding the native people

[@ashkanarzani3856]

@@eljangoolak Our situation is totally different as we have a theocracy and a corrupt government as well as no foreign investments bc of sanctions.

[@eljangoolak]

@@ashkanarzani3856 so basically what i said, government is what caused all that pain for us

[@Moonuuu]

​@@eljangoolak You support radical Islamist

[@DesmondKarani]

Israel and Taiwan are very similar in a way most people would not understand (or try to ignore). Both countries were established by the very brightest individuals who moved from Russia and Europe (Israel) and the mainland China (Taiwan). Imagine having your top 1% moving away to another land and establishing it from scratch? They don't have to deal with the issue of forcing everyone to be aligned to one goal. They're very likely to be very responsible with their resources since everyone wants the best for their new country.

[@cheeseflavoredsoda3262]

Both established by the US to have control in the region*

[@osheridan]

​@@cheeseflavoredsoda3262Israel? Sure. Taiwan? Barely. The current Republic of China dates back to 1912, before the US could make that type of splash so far away

[@nikhilhembrom8952]

​@@cheeseflavoredsoda3262no Taiwan already existed as Japanese colony they took Chinese immigrants and settle them there plus Britain created Israel only usa helped them post WW2 with veto

[@danghoangluong2942]

@@osheridan Israel was created by British

[@tomaszpopawski4577]

Whitout US both would be poor like their neighbours

[@rickeras]

Given what's happening to majority of the oil rich countries in middle east, i'd say the lack of oil is more a blessing than a curse.

[@hhkk6155]

UAE is doing pretty good 💯

[@user-kx4xs2xd3k]

@@hhkk6155 all fun game until dino juice dry up

[@Luredreier]

It's definitely not a easy beast to tame... We're struggling with getting over our oil extraction addiction here in Norway. We'll get there, but it's slow going as there's a lot of money involved...

[@rodrigojds]

@@hhkk6155 for now. If they had been smart they would have done what Norway did with its oil money.

[@hhkk6155]

@@rodrigojds they did better than Norway. Oil revenue is like 5% or smth in UAE, down from 95%, they have done it in less than 25 years. UAE is now a world leading business and finance hub, and a premium tourist attraction 🧲

[@HustenreiZxD]

Can you guys make the Economics Explained Leaderboard into a website or something? I would love to check it out in more detail without rewatching every video!

[@JNKprops]

I agree!!! Been actually curious if they have a summary video at least of the leaderboard, but a website with deets may be even better. ❤

[@roboto12345]

Good idea

[@rosanpaudel6330]

Me too

[@zhshsG7]

I agree, that would be interesting

[@drscopeify]

100%

[@gab882]

Have to look at things in perspective, lots of countries who have their backs against the wall scenarios like Israel, Singapore etc, tend to do well in spite of their limited resources because of having an existential crisis. Shame on large nations with lots of resources as they tend to take them for granted and neglect their most important resource, their people.

[@tenglim4406]

Yes. Instead, they blame the other people and things, ranging from colonialism to racism, rather than reflecting on it and/or learning from it. More importantly, they too, also will vote for the same party and/or policies again when they have a chance at it or at other places!?

[@gluzkin9317]

Yup pretty much explains most of Africa

[@gemmalee3032]

to stay in business, one has to keep moving, be alert

[@bobshagit-io8lq]

and if it werent for other nations constantly funneling money to this terrorist group they wouldnt have the money they have

[@blitzattack567]

@@tenglim4406Colonialism and racism lead to market inefficiency and poor resource allocation so what you spew is non sense.

[@Whyoakdbi]

You’re telling me that an ethnicity that comprises 40% of Nobel laureates in science managed to build a rich country? I am shocked!

[@user-yy2fl2yf5m]

Same organization that gave Obama a Peace Prize for starting three wars on behalf of Israel. Israel's wealth has come from looting FSU and America. Israel not only rigs Wall Street but has also collected Trillions from U.S. military industrial complex after endless 9/11 wars. See: Dov Zakheim

[@BarkWhoGoesThere]

Do you not take billions of dollars of aid from my country (usa)/ our paychecks? Do we not provide universal Healthcare for your country while our love ones have to pay thousands a year to keep alive? Honestly sir can your country still thrive without a single dime I'm sorry to say comes out of our work checks?

[@niranjanjpillaicalculus]

​@@BarkWhoGoesThereThat is actually a muth, Israel pays for its own health care, but the US does sent money for military though

[@BarkWhoGoesThere]

@@niranjanjpillaicalculus I mean no disrespect just searching for truth can you elaborate on how isreal provides universal health care? I've searched for answers and gotten surprisingly no were searching online . In fact how isreal economy thrives other than aid from other countries is hard to find . It's a real mystery to me.

[@niranjanjpillaicalculus]

@@BarkWhoGoesThere Technology dude. They have really advanced technologies in irrigation, salt water purification etc. They provide universal health are by taxes I think.

[@Raika63]

EE videos are one of my favorite parts of the week. Also, my sympathy to whomever is going to be moderating these comments.

[@HannibalBarcaRTW]

Just wish he wouldn't add an extra syllable to final word of his every sentence

[@saajiddaya2152]

so far, not much going on. Pretty chill. There was one idiot trying to deny Moses ever existed and that the Israelites were ever slaves. The best reply so far was: "Oh, first Jesus didn't exists, now Moses? Who's next, Adolf Hitler, Albert Einstien?" It was beautiful.

[@MrLegendra]

Feel like he did a good job avoiding anything controversial except calling Hong Kong a country.

[@saajiddaya2152]

@@MrLegendra only Chinese shills care about that

[@howtoappearincompletely9739]

*whoever 😜

[@banto1]

A few corrections. What finally got hyperinflation under control in Israel in the '80s was a strictly enforced price and wage freeze. The new currency was more of a psychological fix to get prices into single digits for a loaf of bread that people could relate to instead of the millions it cost before. Almost 40 years later and there are still a few products that are still under strict government price caps. While Israel did absorb around a million people from the former USSR, many of those people were elderly and they were a significant drain on the economy, and very few were actually engineers that could be quickly employed in the yet to emerge hi-tech sector. It's actually the second generation of these immigrants that went to Israeli schools and pursued STEM degrees that makes a big contribution to the current hi-tech scene. Israel's economy was also very lucky in that it didn't take too big a hit in 2008 and during COVID. Israel's lack of a significant local market is actually a blessing. This causes most tech startups to think globally from day-one.

[@gregmark1688]

I'm sure the $158 billion in welfare checks and charity aid the US has donated had little to do with it.

[@sarahrosen4985]

@@gregmark1688 US gives more foreign aid to Egypt. Where did that get them? Also, US foreign aid to Israel is basically vouchers to only buy US military equipment, pumping up US industry. But facts aren’t what concern you. You just really really hate that Israel exists.

[@shaylempert8500]

​@@gregmark1688 So what? The US also gave $130 Billion to Afghanistan and $80 Billion to Egypt, and what economic prosperity did that create? Furthermore, the aid is not actually given in money that goes into the economy but in vouchers for US weapon systems. Thismay affect the military significantly but it does not affect the economy. In actuality, most US states receive much more *actual spendable* money from the US and still their GDP per capita is lesser than that of Israel😮

[@aviweiner1614]

​@@shaylempert8500 It does affect the economy a little in that Israel doesn't need to spend as much on defence (though it still spends a lot)

[@creatorsremose]

@@aviweiner1614 In fairness, Israel necessarily has defence expenses that are reasonably higher than most countries because of its geopolitical situation. So in a way, it evens out.

[@gabrieljoseph6310]

The IMF estimated Israel's GDP at US$564 billion and its GDP per capita at US$58,270 in 2023 (13th highest in the world), a figure comparable to other highly developed countries.

[@amitsunoko7270]

Yea U.S. money is liquid gold.

[@Extys]

@@amitsunoko7270 0.5% of their GDP is from the US.

[@etai993]

​@@amitsunoko7270 3.5 billion dollars are given to Israel in arms credit. Nothing of that is calculated in Israel's GDP. Stop the bulshit.

[@TrystanTyrell-dd1px]

$250b of that 500b is US aid oger 70 years

[@ElihuNavon]

@@TrystanTyrell-dd1px israel's gdp is 500b per year us gave less than 200b in 75 years thats around 2.5b per year that's 0.5%

[@Frogbait935]

They get annual funding from America and the west...a lot of funding from other countries tax revenue...

[@sinistercrusader4981]

One thing about other countries trying to replicate Israels success is that simplying copying fiscal and monetary policies doesnt always produce the same results. Israel was able to pull it off because it has a lot of human capital as well as strong government institutions. A country like Pakistan with very low human capital and weak institutions would have a much more difficult time make those policies work.

[@ShubhamMishrabro]

​@@elibunches6044 us aid didn't helped Israel economy. Israel was badly managed till 1980s. Otherwise Egypt, Pakistan and many countries will have strong gdp cause of aid given by usa

[@Unknown-jt1jo]

@@elibunches6044 US foreign aid to Israel is a drop in the bucket, less than 1% of Israel's GDP.

[@DavidCodyPeppers.]

Not to mention the United States paying for their military. Peace! \o/

[@DavidCodyPeppers.]

@@Unknown-jt1jo 3 billion a year + loan guarantees. But if it is a 'drop in the bucket' I guess they no longer need it. Right? Peace! \o/

[@dl6860]

@@elibunches6044 economic aid to Israel is insignificant. you're speaking about military aid, which isn't given in cash. It's given to US companies. Either way, a lot less than Biden handed over to the Taliban and at least Israel is deserving. You clearly have no perspective.

[@zibbitybibbitybop]

One of the other very smart decisions the Israeli govt made was to institute programs in their high schools that allow talented students to do apprenticeships at various companies before they even finish school. This results in graduates with perfectly-tailored job skills and experience for the big value-add sectors, and those companies can just hire many of them straight away and get immediate productivity. I think we could desperately stand to implement this model here in the US instead of throwing everyone at college and plunging those kids into intractable student loan debt.

[@gregmark1688]

Maybe if we'd spent $158 billion on our education system, instead of donating it Israel, maybe we could have afforded that kind of system, too.

[@yossi1491]

@@gregmark1688 Uhmmm, probably not. Not only does public education spending in the U.S amount to $666.9 billion ANNUALLY, but of the $158 billion in aid you mentioned; only $34.4b has been economic aid(actual money) spread out over a period of 74 years… I’m not going to break it down mathematically because it would be unfair not to adjust for inflation, but even if we’re being generous, it only amounts to a fraction of a percent difference in “lost education spending”. None of this even matters because spending actually stops short of what the U.S(fed, state and local governments) budgets for.

[@gregmark1688]

@@yossi1491 fair point

[@raylevi5343]

Not going to work because "muh child labour" and "muh privilege" folks will get involved. Does the US citizenry have the mindset required?

[@jerodriguez74]

Germany has been doing that for years too, just not only for talented students but basically everybody.

[@mosesmm5473]

Love this vidoes as while they're no substitute for doing your own research, as an student that has an economics module, it does make it easier to understand, and just more enjoyable.

[@GODBLESSYOU532]

Great video,informed.gbu🙏

[@dr.victorvs]

I would also like to hear about Brazil's hyperinflation recovery, at some point. Just suggesting a topic.

[@Xandao_O_Imperador_de_Banania]

O plano real foi inspirado justamente neste plano israelense. Infelizmente, o FHC não conseguiu completar todo o plano.

[@renatofernandes7939]

The problem is that it was a solved problem, but it Just got back a few years ago. And right now it's actually an argument against this video, because even with The inflation controlled The country Still has one of The biggest real interest rates in the world, showing that an independent central Bank it's not always good.

[@dr.victorvs]

@@renatofernandes7939 What do you mean? Hyperinflation in the 80s was solved? Or are you suggesting that the more recent inflation (c. 2013) hikes were hyperinflation-which they weren't by any textbook definition I know. Regarding the independence of the central bank, I'm not sure there's a clear cut answer. I'm assuming you already know the cons, so let me argue the other side: It can be positively terrible for a country to have the entire monetary policy decided by whoever wins an election, regardless of how temporary or mistaken a given political "trend" is, especially given they will already be in control of fiscal policy. Turkey is a prime example of what happens when the central bank is not independent: the president lets inflation eat away at the economy and fires any economy minister who says he must hike interest rates.

[@crescentprincekronos2518]

​@@dr.victorvsthe pros are always hard to see. It's almost like one needs hindsight to realize what was good in certain ways.

[@fahadahmad444]

Palestine for the Palestinians. Israelis are illegal immigrants who must return to Europe

[@TheBlackRodent]

Israeli Economics MA student here, most of the stuff said in the video is great and spot on! Israel's strength is its top-of-the-line fiscal and monetary policy. Despite this, there is a huge issue in Israel that has been growing in the recent years and it needs to be addressed - the ever growing disparity in labor productivity in the country. The burden on productivity is actually growing on a smaller percentage of the population - because a fair amount of the economic growth is due to population growth in less productive demographics (specifically Haredi populations who do mostly do not take part in highly industrialized sectors and do not partake in investments in human capital). So these very productive sectors, who are mostly characterized by high export rates do not see the economic benefits of the population growth. For more information I would highly recommend to read works by Prof. Moshe Hazan and Prof. Joseph Zeira

[@oshke5225]

Yep, pretty surprised they did not mention that at all

[@dylanwebb2]

It also glosses over the massive foreign aid in the past does it not? Or did I miss it?

[@vorong2ru]

​@@dylanwebb2 that's foreign aid was pre new sheckel anyway

[@lloydgush]

Just do new haredi.

[@lloydgush]

​@@dylanwebb2 the "aid" is military loans. It actually makes a lot of interest for the US, which is meaningless because Israel is a fraction of the US.

[@coachalexjara]

Great job, brother. Keep up the good work.

[@venganzamujer354]

Great info thanks

[@ulrichbrodowsky5016]

I wonder where the international space station would be on the economics national leaderboard. Sure there is a lot speaking against the ISS, but it's GDP per capita should be downright astronomic!

[@john2335]

Also, for comparison the late russo/soviet Mir would be a nice addition, for reference. Unless the former inhabitants are members of the duma, I bet they at best own a 43m2 apartment in a nasty kruschevka and gdp per capita is at the levels of Ethiopia 🤣

[@marhabanet]

It gets 10 out of 10

[@howtoappearincompletely9739]

Pun intended?

[@ulrichbrodowsky5016]

@@howtoappearincompletely9739 of course

[@drfelren]

10 out of 10 for GDP per capita, but its growth prospects don't look great. There is a private company (I forget which one, as there are many aspiring to build space stations) that has a blueprint to attach their module to the ISS and then disconnect from it before the ISS mission terminates. This would in effect keep the spirit and some of the equipment from the ISS in orbit, however, the invasion of Ukraine has shortened the life of the ISS, and thus I am pessimistic that this concept will launch. I am super hyped for Gateway and the other potential space stations in the coming years and decades. As a big StarCraft fan, the namesake of Gateway makes me happy.

[@ayandasigxashe7198]

Brilliant, informative interview! Always good to listen to the veterans of the field, Thanks

[@yodorob]

One more little but significant thing not mentioned in this video: Israel has been labelled the "Start-Up Nation" due to its technological and military expertise.

[@davec1615]

israel actually developed its jewelry industry due to its deep alliance with apartheid south africa which was the world's largest producer of gold and diamonds

[@motorvlog5952]

It would be interesting to also see a Gdp chart for every one of these countries split for agriculture, services, industry, ...

[@AnimatedStoriesWorldwide]

Wikipedia still exists as of today...

[@dangerousavocadoschannel4081]

Interesting video but where is chapter 4? 2:15 of the video they say they will discuss if the economic success story of Israel could be coming to an end, but then this question never comes up again!

[@Ataturkinator]

I think it was kind of made unnecessary by the entire remaining part of the video being how they're growing very well and building up very stable and sustainable industry. Probably just added in for viewer retention lol

[@eliavrad2845]

My guess is that they cut the part on the demographic shifts: While Israel has a sector of wealthy, well educated population, there are other sectors who are less wealth and even poor like the ultra-orthodox or Arabs, and nobody has any idea what to do about that, so it's not certain the success story will continue. The political situation which was bad in the 80's but looked to be getting better is about the same but looking to get worse, so confidence is an issue. It reminds me of a lot of the problems in California: The economy is much better in numbers than in person, and there's no real solution to any of the long-standing problems.

[@juliantucker807]

The current government is a big threat to Israel's economic future

[@lordoflamanchar]

yup... 🥳

[@barakdan1858]

Fantastic video, really enlightening, thank you!

[@fahadahmad444]

Palestine for the Palestinians. Israelis are illegal immigrants who must return to Europe

[@hinzkunzinger7891]

I wouldn't even be sure Israel is doing so good DESPITE it's political situation. It could just as well be BECAUSE they have to be careful at every step, stay alert, can't afford to doze off in a corrupt swamp and have to maintain an amazing discipline to maintain their stand. It's not like being unsuccessful or even mediocre is an option. It's be successful or get overrun by your neighbours.

[@miaya3898]

Israel wasn't actually invincible in the 6 day war. The Syrian Army was giving them a good whooping. Only for the UN to negotiate a ceasefire. Syrians troops learned of the order to stand down from radio broadcasts. Guess who was the defense minister of Syria at that time?

[@Artistofun]

This is not about oil or no oil. This is about culture. If books and reading was part of arabic countries dna (not just a privelege) - we all would already be happily living in a worldwide khalifat

[@Artistofun]

Quite opposite, oil gives you illusion of wealth and power, and more huge reasons for corruption and wars as you sea now in Israel around gas.

[@RedPhoenix550]

Man as an Israeli who watches your videos regularly, I've been waiting for this video for a very long time. Now I get it just in time for Israel's independence day. I'm glad to say the video didn't disappoint. Great job!

[@xAnonymousComedia]

Israel's colonization day

[@dolevlitvin8904]

Same here (-:

[@aizenmd5705]

Same

[@MrGenoHydra]

אתה לא היחיד שרואה את הסרטונים שלו באופן קבוע. And i hope the current govt won't muck it up too much because of their hardcore populism

[@RedPhoenix550]

@@tomertzaig2627 I am a big supporter of the elected government and I wish the personal vendetta against Netanyahu would cease.

[@rabbiwarrior6420]

Great video!!

[@Articulate99]

Always interesting, thank you.

[@meircohen4814]

I was waiting for this for so long!!

[@zawadmuttaqi5597]

Hi economics explained! I have been watching your channel for a while now. You consistently make undoubtedly the best economics videos on KZbin. I greatly admire your style of explaining a country's economy. Can you please make a video about the economy of Bangladesh? The country has grown magnanimously in the past 30 years. I think it would be a great video

[@foreverskeptical1]

ohh yeah that would be interesting to see

[@gstarr9121]

God bless Israel

[@m.heyatzadeh]

This is really informative. I really appreciate the amount of effort that's been put toward these videos.

[@fahadahmad444]

Palestine for the Palestinians. Israelis are illegal immigrants who must return to Europe

[@bensnumber1fan708]

Amazing video, keep em coming

[@Mytimenow123]

A very clever population. I love that.

[@YudraKudra]

1:45 Todaaaaaaaaayeee🤣🤣🤣🤣 Aussie accent😅

[@mdkddkkdkdkd4692]

Hey mate, I would love to see you re-rank Switzerland on the leaderboard after the Credit Suisse crisis.

[@AnimatedStoriesWorldwide]

(Implying a single bank failing can affect the economy of an entire nation...) The wealthiest company on earth is poorer than the poorest developed country, and that's with assets spread on all continent. The failure of CS will probably not even reflect in a percentage change of GDP growth for switzerland....

[@mdkddkkdkdkd4692]

@@AnimatedStoriesWorldwide thanks for your reply. However, take a moment to remember Lehman Brothers and how its debacle triggered the GFC? Now, the combined UBS is twice the size of the Swiss economy and hence too big to bail. The glorious Switzerland isn't rich enough to bail UBS and it's hypothetical failure will reek havoc across the global financial system.

[@joecurran2811]

​​@@mdkddkkdkdkd4692 Other countries might step in. Then again they might not.

[@fahadahmad444]

Palestine for the Palestinians. Israelis are illegal immigrants who must return to Europe

[@yannickhansen9362]

Great video again, I really enjoy your analysis of countries and would love to see more countries but especially I’d enjoy a new video about Germany since the last one was made before Covid and the Russian Invasion and didn’t yet include your ranking. Also it was more of a historical analysis of Germany and I’d love to hear your analysis on the current state of the economy with high energy prices due to a previous dependency on Russian gas, the fall away of nuclear energy and the general green transition goal of climate neutrality in 2045. Germany is heavily reliant on fossil fuels for its car manufacturing and heavy industry but is adapting by electrifying processes and starting to use hydrogen. I’d guess this would be a very interesting topic. Thanks and keep up the great work 👍🏼

[@rossthompson7956]

They make whatever is given to them better.

[@U.K.N]

“Not many people are buying missile defense systems” WHY AM I LAUGHING AT THIS SO HARD 😂😂

[@alfapaul5593]

You are laughing because of the deception of the video.

[@U.K.N]

@@alfapaul5593 yeah fair enough

[@anitamurkes9511]

Now they are !

[@vap72a25]

Your videos are always great, but I would like to be able to visualize the leaders board for a little longer

[@andreisamarin3517]

Amazing content as always! Would be very cool to see an update on Germany and see it placed on a leader board 😅

[@fahadahmad444]

Palestine for the Palestinians. Israelis are illegal immigrants who must return to Europe

[@larry-2]

BRICS wants to build a new currency. It is also worth noting that gold has historically been used as a store of value and a means of exchange, and some countries still hold significant amounts of gold in their reserves. However, it is unclear how a new currency backed by gold would function in the current global financial system and whether it would gain widespread acceptance. Ultimately, any decision to create a new currency would be subiect to numerous economic, political, and logistical considerations.

[@kenthendrix.]

It's interesting to learn more about the discussions and proposals around BRICS nations and their potential use of gold. There are several reasons why people may choose to buy gold, including its historical use as a store of value and means of exchange, its potential as a hedge against inflation or currency devaluation, and its relative scarcity compared to other commodities. Additionally, gold can offer diversification benefits to investment portfolios, as it tends to have a low correlation with other asset classes like stocks and bonds. However, it's important to note that investing in gold carries risks and may not be suitable for evervone. and investors should carefully consider their investment objectives, risk tolerance, and financial situation before making any decisions.

[@christianaemilio1]

Investing in gold is a reliable choice, and I plan to keep buying more to make up for my losses. While silver is also a good investment, my collectibles are not as similar. It's important to have clear investment goals and educate yourself on the type of investment that interests you. I work with COURTNEY HEATH WILLIAMS, a financial consultant regulated by the SEC, and started small, but eventually accumulated almost $1 million.

[@williamsdavis.]

@@christianaemilio1Please if you don’t mind, could you please share the contact information of your financial advisor, because I’m seeking for a more effective investment approach on my saving.

[@christianaemilio1]

His available on telegam with the username information below.

[@williamsdavis.]

@@christianaemilio1I appreciate you for sharing. Finding his handler was simple; he appears to be knowledgeable and adaptable. I drop him a message hoping he responds.

[@MarleyFuaad]

It's called American dollars.

[@ilaypeled9094]

I’ve been waiting for this video for years, thank you so much! A few things that are worth to mention: Israel has a very impressive agriculture industry, leaning on innovative farming techniques and water purification methods that were locally developed. The produce, wine, olive oil, and other products here are considered to be top tier, however Bering that labour is expensive in Israel the products are not extremely competitive in the global, or even local markets. The export of many high tech companies, and military equipment is also a main source of foreign reserves, and that has been a huge help for not only stabilising the shekel, but making it into a strong currency that allows for easy imports, and gives our population the opportunity to travel the world cheaply.

[@gregmark1688]

Do you suppose the success of their agriculture relative to their neighbors has anything to do with the fact that they illegally invaded and annexed the primary water sources in the region with their US-supplied tanks and guns? Nah, probably just a coincidence.

[@22KIzo]

@@thotslayer9914 אכן. כתבה שטחית. עד לפני חמש עשרה-עשרים שנה היה יותר זול כאן ורוב האזרחים היו יכולים לקנות דירה בשכונה טובה או לשכור דירה באזור ת"א-רמת גן

[@fahadahmad444]

Palestine for the Palestinians. Israelis are illegal immigrants who must return to Europe

[@stupidnumber23]

רק מראה שgdp per capita הוא נתון שאמנם יכול להצביע על דברים מסויימים אבל מעלים עין מדברים אחרים. יוקר המחיה בישראל משוגע והכסף מתחלק בחוסר שיוויון משווע. אני עזבתי את הארץ, בן 31 ועם שני דירות. יכלתי רק לחלום על זה בארץ.

[@AtidAPT]

you have forgotten to mention USA. WIthout USA , nothing would have been achieved in israel. USA is the sole reason why israel has achieved all the advanced technology and for israeli poeple can travel the world cheaply.

[@user-wq1hq4mp9i]

Very good video. The hyperinflation was related olso to the big banking froud in those years.

[@hameezahamed2719]

Theft.

[@abdorrahim914]

American taxes

[@brittennz]

Thanks a lot for answering my request and reviewing Israel economy. The timing could not be more interesting as i am currently in Australia

[@arielaw4]

Not related to this, but I would love to see a video on Non-Market housing

[@scottgriffin2005]

Because they are smart and are not lazy

[@gpl992]

The two Opposites of what Anti Semites tend to be:Lazy and Stupid.Just like the SJWs.

[@jon9625]

Interesting historical perspective. I believe the effect of gas production has been very modest. The economy has been very succesful for quite some time even before gas started flowing. What is significant is the substantial scope to further increase gdp given the population growth rates and the growing numbers of women, ultra orthodox and arabs into the economy

[@shreyanshu9785]

"Not too many people are buying missile defense system" this says a lot about society.

[@user-oi2jx4bx8z]

WE live in a society 😮

[@jingus3]

Been waiting 2 years for this

[@TheKlaun9]

I love how all the people who think they know better can't formulate any arguments beyond "money from the US." I'm not saying there isn't a case to be made, but if you think you can boil it down to a couple of words, you just don't have a clue how anything works.

[@OMGGaya]

thank you!!

[@simko8665]

That's right.

[@ayoubalrfadey3031]

Sometimes the truth lies in just few words, money from US is one of those

[@simko8665]

@@ayoubalrfadey3031 You probably will laugh to this, but In the bottom line, The US owns Israel much more than their aid to Israel. I can prove it. You yourself can do it by reading the US Foreign affair ministry annually report. It's written there black on white. Your truth is a lie.

[@TheKlaun9]

@@ayoubalrfadey3031 there is a big difference between a simple truth and for example knowledge

[@GH-xy4zz]

Human Capital matters very much. And for Human Capital, you need a culture that promotes hard work and smart work…

[@binacharya]

Hi EE, Been huge fan of your videos for years now. There is a little problem in this video.....where is Chapter 4 stated @2:14 of the video? Also for Chapter 3 question, I wasn't able to get any direct answers from the video. While watching, I was thinking maybe Turkey could replicate as it does have foundations needed like educated ppl etc....that's when I also realized there was no direct answer for Question 3 given either. Maybe make this 2 part video to address those.

[@michaelwebsternz]

Is EE going to do a video on the new RBA policy reform that prevents the board of the RBA from setting interest rates? That will be a very interesting change. Seems like a big backwards step.

[@michaeljamescollins6800]

the new board is composed of the governer of the RBA. So the governor and the RBA still set rates. Its just that the old board was full of 'business' people who had no ecenomics experience. The new board will be composed of economics and finance experts

[@michaelwebsternz]

@@michaeljamescollins6800 To say business people don't have economics experience is clearly wrong. They are often the best and most connected people to the real economy. Doing everything from theory often causes problems with unintended consequences. They should simply have admitted they had the wrong composition of the board and made some changes. The headlines came across poorly and were quite misleading.

[@RY_2023_]

Why is Israel the number recipient in foriegn aid from the U.S. ? Let’s not forget that

[@matts6818]

it’s expensive maintaining a defence system as large as the iron dome, go figure. when you have people launching thousands of rockets into your country, that generally costs a lot to maintain

[@OmarOsman98]

Israel would go bankrupt if left to pay for military expenses alone.

[@Aforex001]

Very sentimental Video

[@Connor-vj7vf]

Good video but does skip the recent political upsets and demographic shifts in the country

[@YG-mc9fq]

True. But as an Israeli anything that will be said will be a big guess. We cannot really predict what's gonna happen with the demographics. The judicial reform the government is trying to pass is actually predictable.. They(the government) will fail. Even if they manage to pass some of it without a consensus the Supreme Court will simply cancel it.. They are also down by a lot in every single poll

[@Proletariat-intifada]

Because saying Israel is an apartheid genocidal regime is kinds bad for yt monetizationn

[@MateoMPM]

@@Proletariat-intifada God bless Israel 🇮🇱 " Genocidal she says 😂"

[@robertetin1156]

I would be curious for your opinion on the book "Startup Nation", which about Israel's economic transformation from essentially a socialist state to a tech hub.

[@AnimatedStoriesWorldwide]

The only way to being a tech hub is through a socialist state, especially for new nations (I don't say this as a socialist, I don't lean left). The first generation arrives, mostly poor and uneducated so it needs free public services to guarantee the second gen can focus on studying manufacturing so that the third gen can shift to a service/STEM economy. Nobody ever arrived in a quasi blank place, and had kids that became engineers, while struggling to get running water.

[@robertetin1156]

@@AnimatedStoriesWorldwide I agree. But the fact is that plenty of countries start of socialist and are not able to transform themselves into economically powerful tech hubs the way israel has. Israel isn't the only country that has been able to do this, but the list is relatively small and israel has done very well even in comparison to other countries that have successfully transitioned from socialist to market economies. The book I mentioned provides one explanation for why israel has transitioned so spectacularly. I would be curious what EE thinks about that explanation.

[@fahadahmad444]

Palestine for the Palestinians. Israelis are illegal immigrants who must return to Europe

[@dawnfire82]

@@AnimatedStoriesWorldwide Really? Because that is, roughly, the history of the settling of the American west. Pioneers and settlers staking out homesteads in the hills, forests, prairies, mountains, and deserts of the expansive west, without power, running water, paved roads, or even governance. But they were literate, set up schools, and advanced themselves. No socialism in sight.

[@shainahum6717]

​@@dawnfire82actually the US had a history of socialism policies when you look back at it. for example giving land ownership to settlers in the west. also, the support given to children and students of the baby boomer generation after WW2. while USA isn't nor wasn't a socialist country, you can see several socialist policies in it that were an important boom in the economy. also, there is a difference because the USA took more then a century to become a major eorld player (with a huge territory and lots of citizens) compared to israel's 50 years to become a major high-tech competitor in the world, without the same amount of lands, people and recources that the USA had.

[@emad3241]

how to be a rich country despite competition: get $140B from the US

[@hollandicus_missile]

Israel uses its money for helping it's citizens Hamas uses it to do the exact opposite to its citizens

[@user-re9mz2bt1e]

@@hollandicus_missile Who created hamas?

[@hollandicus_missile]

@@user-re9mz2bt1e Hamas was created to originally destroy another terrorist group a what seem back there that hamas was better than them the Israelis created them but after the other one was destroyed Israel stopped funding, today its funds come from other countries. Over the years Hamas got over 100 biliion dollars and yet they didn't do anything good with that money (unless you're one of the idiots that says that targeting babies with a direct line of fire is good for humanity)

[@alfapaul5593]

@@user-re9mz2bt1e I guess you can get answer to your question if you know who created Ossama.

[@boomgoesdynamite4177]

Iaraelis r hella smart and its do or die in MENA.

[@xx_gamer_xx8315]

This video looks fantastic! Better than earlier videos. Well done, editor!

[@JJs_playground]

Agreed, it looks a lot better.

[@fahadahmad444]

Palestine for the Palestinians. Israelis are illegal immigrants who must return to Europe

[@Ea-pb2tu]

Smart to not show the map in the beginning

[@marhabanet]

Would have been greatly controversial

[@rafaelacosta5724]

This channel leans to PC. That's why it's left-leaning biases.

[@Ipress22]

Small but fascinating ❤

[@zzulm]

Billions from US taxpayers

[@leandrochavez6480]

Can you make a video about Chile? You're the only guy in youtube who can do a reliable analysis of its economy without getting political about it.

[@Dorlan2001]

Chile should be an interesting one, and I look forward to it. Curious to see how it compares/contrast with Argentina

[@leandrochavez6480]

@@Dorlan2001 He already made a video about argentina but i think its the best example to compare in the region, specially in recent times.

[@mrinmoybanik5598]

I think small nations like Israel are in a much better position to manage their economies better than larger ones. Other than china their's hardly any other country of its size that could change it's economic trajectory by such margins.

[@shithalshetty9762]

India might

[@emmanuelezele7281]

why other than china ...japan is over 120m

[@shithalshetty9762]

@@emmanuelezele7281 but it's declining power

[@emmanuelezele7281]

@@shithalshetty9762 funny west propaganda

[@only_fair23]

​@@emmanuelezele7281Wait, why would that be West propaganda? Japan is one of the US' strongest allies. And it is declining.

[@TheLigthbringer]

The way this guy says todaaaay 😂😂😂

[@chikabiche7192]

Lol 😂

[@arielnaveh6020]

Harel is an insurance company, and Bank Hapoalim is, well, a bank. not exactly industries, let alone high tech

[@richardsimms251]

Very interesting video

[@FlyingHangman]

I love how much I can learn from your videos... especially when you have little snippets like "turkey, formerly turkey"..... which at first made no sense, until a bit of research led me to discover that the name was officially changed from Turkey to Türkiye last year.

[@VISHNUMOHAN-hj9sj]

LOVE AND RESPECT TO ISRAELI BROTHERS AND SISTERS FROM INDIA 🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡🧡

[@untouchable360x]

"Keep your enemies closer." Whoever said this didn't have many enemies.

[@finnalter213]

Very impressive

[@osabros]

Thanks for featuring israel EE!! Love your videos, and glad to see your analysis of us 😊 Points you conveyed accurately: - the highly educated population, skilled migration and tech boom are spot on - the recovery from near economic collapse was spot on, and truly remarkable compared to other countries facing such issues Some minor pointers: - the discovery of natural resources happened around 2007, so the skilled migration boom and tourism were big way beforehand since the early 1990s - although we're good at semiconductors and other manufacturing, software has become huge in recent years. - israel does struggle with very very high cost of living - arguably, the reason tech boomed is because of very complicated bureaucracy in every other sector. The government didn't help that much, it mostly did not interrupt!

[@michaelali4488]

I’ve noticed that Israel seemingly has a lot of health/medtech companies. Curious to hear what you think is driving that

[@Ynhockey]

​@@michaelali4488 One of the reasons is that Israel has a hybrid healthcare system, where it's mostly public, but private enough that doctors are encouraged to do/publish their own research. Moreover, a huge percentage of Israeli doctors studied abroad, so the local med schools have absolutely insane requirements, i.e. locally trained doctors are only the cream of he crop. Finally, the government invests quite a bit in medical research, and has removed many regulations, so Israel has relatively relaxed medical trial and data collection/sharing regulations. This drives medical research automatically, because health data analysis is much easier than, say, drug development.

[@henrylam92]

You forgot to mention that people who join the military to learn about cybersecurity will often times land a job after done serving

[@osabros]

@@michaelali4488 @Ynhockey summarized it well, I'll emphasize the issue of data availability The Israeli healthcare system is based on "vouchers" - different healthcare providers convince citizens to join them, but instead of being paid by the citizens they get paid by the government This creates incentives for providers to give the best possible service at the lowest cost, so they get as many citizens / revenue as possible. In order to make it easy for citizens to switch providers, there is a centralized and anonymized database with all the medical records of all citizens. This makes medical research and development incredibly easy - it's so much easier to track the efficacy of existing treatments and to suggest new ones when companies can see the real world health status of millions of people. It's also one of the reasons we got Pfizer vaccines early - we helped Pfizer prove the vaccine's effectiveness on an entire country rather than a relatively small control group. The voucher system is a great way to allocate government resources in a way that incentivizes the common good - let's hope we see more examples of this in all countries

[@Libertarian1111]

As someone who lives in Israel, I completely agree with you. I've been making the same arguments as you for a long time: the only way to make money in Israel is in high tech, which benefits from massive tax breaks and subsidies. While I am pleased that the technology sector is thriving, I believe the government should work to extend these tax breaks to all businesses by lowering corporate tax rates, simplifying taxes, and reducing bureaucracy.

[@user-be6zj8nc2t]

First, I want to thank you for your videos, I Watching them every week. As one who lives in Israel I Waited so long to watch your video about as, and it was worth it. Thank you so much.

[@tagantchikova.natalia]

It is necessary to remember that the basis of macroeconomic modeling, financial engineering, organized (exchange) market, normal property turnover (including production) is property law (the ancient science of Roman law in its modern form) and the corresponding legal consciousness, other legal sciences that arose on this basis, including constitutional law, international law, that legal nihilism is a type of scientific skepticism, that epistemology (theory of knowledge) is a propaedeutic to all sciences, that people with STEM cannot be legal nihilists, otherwise they either only formally consider themselves to certain professions, but in fact they are C grade students, or they have degraded due to the negative experience of the time and place of legal consciousness that exists in new circumstances for them, recently one can say more of the time than the place. The crisis of 2008 was largely caused by the crisis of property legal institutions, such as mortgages, Torrens registration, the unscrupulous eclecticism of the pandect system and common law in the minds of people who did not have their own experience of possessions of land.

[@danaishappy]

I'll tell you what our secret sauce is: living in such a hostile neighborhood forces you to get creative and innovative. Palestinians channel this to being professional victims, we channel it to success, making this place bloom despite the enormous challenges we face. Also IDF is a place where great partnerships are formed, we are brothers in arms and in business.

[@m_dawood]

I share some of your views but usually a place in a hostile neighborhood shrivels unless backed up by outside power. Israel is the biggest recipient of aid. And Israelis used to be trained in Europe and USA before returning to put their knowledge to good use for their people. In this case, tge hostile neighborhood becomes a a factor for driving forward. I too wish Egypt would watch and learn since we're also surrounded by hostile nations 😉

[@MrLegendra]

You did a great job staying neutral and not saying anything controversial in this video! Except perhaps calling Hong Kong a country…some bots may get angry with that lol

[@gregmark1688]

What I love is how, in the 1930s, Time magazine did a great job of staying neutral and not saying anything controversial when they made Adolf Hitler their Man Of The Year. Sometimes not saying something controversial is the wrong thing to do, but hey, who cares about all that history stuff, amirite?

[@MrLegendra]

@@gregmark1688 Isreali people have a right to exist. Isreal has offered a two state solution multiole times but Palastineans want them wiped off the face of the earth. But you know...who cares about History?

[@marina12345678911000]

@@gregmark1688 Fascinated! Just learned: Over the years, Time Magazine has named a number of controversial figures, including dictators, murderers, and criminals, as their "Man of the Year" or "Person of the Year." Here are a few examples: Joseph Stalin: Time Magazine named Stalin "Man of the Year" twice, in 1939 and 1942, due to his leadership of the Soviet Union during World War II. Ayatollah Khomeini: In 1979, Time Magazine named Khomeini "Man of the Year" due to his role in the Iranian Revolution and the establishment of an Islamic republic in Iran. Deng Xiaoping: Time Magazine named Deng "Man of the Year" in 1979 due to his leadership in modernizing China's economy and opening it up to the world. Adolf Hitler: As previously mentioned, Time Magazine named Hitler "Man of the Year" in 1938. Nikita Khrushchev: In 1957, Time Magazine named Khrushchev "Man of the Year" due to his leadership of the Soviet Union during the Cold War.

[@marina12345678911000]

Vladimir Putin: Time Magazine named Putin "Person of the Year" in 2007 due to his increasing influence on world events, particularly his leadership of Russia. Bashar al-Assad: In 2011, Time Magazine named al-Assad as one of the runners-up for "Person of the Year" due to his leadership of Syria during the early stages of the Syrian Civil War.

[@only_fair23]

You could say that about Taiwan but Hong Kong isn't a country no matter how you cut it. It's not independent.

[@mariothibau1070]

Make a video on Brazil hyperinflation in 1990s

[@bharatichaudhari]

Good explained

[@davidtrak2679]

To be fair, there was never a real dollariation in Israel, meaning the Shekel was always used, even when inflation was high. It's true many citizens opted for Dollar CDs, but transacted with Shekels. Dollarization was suggested as a last resort for the economy, but never implemented eventually.

[@gisselleivancovsky2453]

In the 90s rent prices were listed in USD, the payment was done in NIS but the accirding to the change rate

[@davidtrak2679]

@@gisselleivancovsky2453 Even up until ~2008, housing prices were unofficially nominated in USD, it was just easier this way. But paid in shekels according to the rate, right. Since they've skyrocketed in 2008 and inflation has been tame, it's in shekels. Didn't know that about rent as well, thanks.

[@salmanb2599]

Where can I find the national leaderboard? Is there a website or anything?

[@sirsurnamethefirstofhisnam7986]

It’s his own made up personal list on this KZbin page not on a website

[@ronen241]

I waited for this so long

[@HRAHMAN91]

The answer is education, entreprenership culture, great community support, last but not least AMERICA

[@pedroelso8801]

I really liked how you recognized Hong Kong. Good job

[@yotamCook]

Hey am one of those 9.4 million 🎉

[@Gorjid19Venus]

At around 6:50 I think you made a mistake - the Israeli shekel replaced the Israeli pound (or Lira) one to one, not the new Israeli shekel.

[@gilliebersohn2109]

Wrong! The Lira (aka pound) was the first currencty, it was replaced in 1980 by the Shekel, 100:1 which in turn was replaced by the New Shekel 1,000:1.

[@Gorjid19Venus]

​@@gilliebersohn2109 yeah that's the point.... He's saying that the shekel replaced the new Israeli shekel in 1980 and that's wrong. The shekel replaced the Lira in 1980

[@ZoharHayun]

I'm surprised there still so little free air comments

[@teawonder]

Forgot to mention the $260 billion dollars given by the American taxpayer.

[@alfapaul5593]

Reading through the comments section for someone to mention handouts from Americans taxpayers, Yours was the first I found. He also forgot to mention the rate of unemployment among the citizens of Israel.

[@mohamedbakr4251]

Do Egypt next please!

[@9Steff99]

Turkey, formerly Turkey

[@juhotuho10]

Turkiye, formerly Turkey

[@m.b5777]

If they are so rich why are they getting Billions from US taxpayers every year?

[@tigranpetrosyan7955]

in the last 75 years USA has put 300 billion in Israel's Economy and military, Germany contributed a lot, western countries shared technologies. Not surprising at all