Benjamin Netanyahu
Economic views

You want to have a meritocracy. You want to have initiative, risk, talent, the ability to create new products, new services to be rewarded... It's always been about competition. That's what human progress is about. You want to siphon it into productive ways.

Benjamin Netanyahu, The Marker, 2014

By 1998, Netanyahu had acquired a reputation as "the advocate of the free-market" and in 1999 told the Jerusalem Post: "Peace is an end of itself peace, without free markets, will not produce growth. But free markets without peace do produce growth." As prime minister in his first term, he significantly reformed the banking sector, removing barriers to investment abroad, mandatory purchases of government securities and direct credit. As Minister of Finance (2003–2005), Netanyahu introduced a major overhaul of the Israeli economy. He introduced a welfare to work program, he led a program of privatization, reduced the size of the public sector, reformed and streamlined the taxation system and passed laws against monopolies and cartels with the aim of increasing competition. Netanyahu extended capital gains taxes from companies to individuals, which allowed him to enlarge the tax base while reducing taxes on incomes. As the Israeli economy started booming and unemployment fell significantly, Netanyahu was widely credited by commentators as having performed an 'economic miracle' by the end of his tenure. Direct investment in the Israeli economy had increased by an annualized 380%. On the other hand, his critics have labelled his economic views as Margaret Thatcher -inspired "popular capitalism".

Netanyahu defines capitalism as "the ability to have individual initiative and competition to produce goods and services with profit, but not to shut out somebody else from trying to do the same". He says that his views developed while he was working as an economic consult for Boston Consulting Group: "It was the first time that the Boston Consulting Group looked at governments and worked for governments. They wanted to do a strategic plan for the government of Sweden. I was on that case and looked at other governments. So I went around to other governments in Europe in 1976 and I was looking at Britain. I was looking at France. I was looking at other countries, and I could see that they were stymied by concentrations of power that prevented competition. And I thought, hmm, as bad as they are, ours was worse because we had very little room for private sector competition to the extent that we had government-controlled or union-controlled companies, and so you really didn't get the competition or the growth... And I said, well, if I ever have a chance, I'll change that."
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