While Israel’s economy today is widely associated with the image of a fast-paced “start-up nation,” the founding fathers of the modern state envisioned it as a Socialist utopia.
In its early years, Israel’s economy was controlled by the “Histadrut,” a socialist labor union. This union held control of the economy through decades of mass immigration, war and economic collapse.
Finally, in the 1990s, the Israeli government moved to nationalize health insurance and, almost overnight, control by the Histadrut was eradicated.
This gave way to Israel’s current market economy. Through the ups and downs of a journey from a socialist to a capitalist economy, Israel’s ability to innovate has paved the way to it having one of the top GDPs per capita in the world.
