Netanyahu Discusses Economic Reforms and Family Formation in Israel
In a recent interview with Breitbart News, Israeli Prime Minister Benjamin Netanyahu shared insights on how he increased fertility rates by strengthening the military and moving away from “semi-socialist” economic policies.
Reflecting on his tenure as finance minister, a role he held two decades ago, Netanyahu detailed the transformative changes he initiated. He mentioned in his biography, Vivi: My Story, the impact of those changes on Israel’s economy and society.
Breitbart News posed a question regarding the economic reforms he implemented and whether they positively influenced family formation in Israel. They pointed out that Israel is the only Western country with fertility rates above the alternatives.
Breitbart News: It’s fascinating how your reforms as finance minister contributed to this. Did your changes in social policies actually promote family growth alongside employment? What can the US and other Western nations learn from Israel’s success?
Netanyahu: Well, I believe that when families are dependent on welfare, especially fathers, it undermines their self-respect. It’s easy to point to welfare benefits, but it doesn’t foster dignity or involvement in the job market. When people find work and earn more than welfare provides, they take pride in their contributions, which influences their children positively. There’s a clear connection. I had to make tough choices, like reducing child allowances, to encourage participation in the workforce, and this led to a significant drop in poverty.
Additionally, I focused on cutting taxes, trimming wasteful spending, and addressing monopolistic practices that have lingered in Israel’s economy for decades. I liberated the currency, which had been tightly controlled. The central bank’s previous policies were quite restrictive. Overnight, I removed the necessity for permissions to spend, and there were doubts about whether this would lead to capital flight. In fact, investment and economic activity surged within the country, moving us towards a more liberated economy. The results were transformative.
Politically, these changes were challenging, but the outcome speaks for itself—Israel’s GDP per capita jumped from $17,000 to over $60,000. The innovation and entrepreneurial spirit here are almost unmatched, aside from the US. We shifted from a stagnant, closed economy to a thriving market focused on technology and innovation. I’m optimistic about the future.
I think these factors bolster our national strength and help us manage military obligations.
Netanyahu further noted that Israel allocates about 4% of its GDP for defense—double the NATO requirement, even before considering US military aid.
He also highlighted that Israel supports families with substantial childcare and healthcare benefits. Various elements of Israeli culture, including religious beliefs and the reality of external threats, further encourage childbirth.
