Israel’s economy is soaring—why isn’t it bringing peace?

Most of us have been taught that much of the world’s political instability and violence is rooted in economic problems and hardships.

The argument often goes something like this: “If the people in country X could just get more jobs and hope for a prosperous future, then the terrorism/crime/unrest would stop.”

For the most part, this idea makes sense. And it’s the linchpin of those who believe that special investment incentives, IMF loans, and non-governmental-organization (NGO) facilitated pilot business programs are essential tools for peace.

Wouldn’t it be harder to recruit the would-be terrorists and militants of the world if a good-paying job was the alternative? Wouldn’t blowing up buildings be a dumb thing to do when you were the person who built or invested in that building in the first place?

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An employee uses a forklift truck to prepare pallets of SodaStream products for export at the SodaStream International Ltd. factory in Mishor Adumim, near Jerusalem, Israel.

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