Shutdown Nation: The Political Economy of Self-Destruction

This article examines that the shift in Israeli society and political economy from ethnic socialism to individualistic capitalism was accompanied by a shift from a strategic and collectivist liberal Zionism to a nonstrategic individualistic right-wing populism. It is a shift that made the State of Israel vulnerable to shock and crisis, and turned it “from a startup nation to a shutdown nation.” Unlike the crisis caused by the 1973 war, Israel lacks the tools to cope with the crisis of October 7 and embarks on a path of self-destruction. JEL Classification: N45, F54