Posted by Ilya Somin:
Milton Friedman on Israel and Jewish Support for Socialism:
http://volokh.com/archives/archive_2006_11_12-2006_11_18.shtml#1163740479


   [1]David Bernstein's post on the excesses of Israeli socialist
   ideology remind me of Milton Friedman's 1972 essay, "Capitalism and
   the Jews: Confronting a Paradox," (I haven't been able to find an
   online link, but it's available in Kurt R. Leube ed., The Essence of
   Friedman at 43-57 (1984)). Friedman addressed the interesting question
   of why Jews tend to be hostile to capitalism and sympathetic to
   socialism despite the fact that, historically, Jews have been most
   successful and most tolerated in those societies where free markets
   and civil society were relatively unfettered, and suffered most from
   anti-semitism in highly socialized and statist economies (worst of all
   under Soviet socialism and, of course, Hitler's National Socialism).

   He argues that Jewish support for socialism was partly a reaction to
   the fact that in 19th and 20th century Europe, the right-wing parties
   tended to be nationalistic and anti-semitic, so that Jews were
   naturally drawn to their political opponents (at the time mostly
   socialists and statist liberals). More interestingly, Friedman
   suggests that Jewish socialism was in part a reaction to the
   stereotype of the Jew as a greedy capitalist, an attempt to "prove"
   the stereotype wrong. He specifically references Israeli attitudes as
   the most extreme manifestation of this mentality. And in fact early
   socialist Zionist ideology emphasized the need to reject the
   stereotypes associated with Diaspora Jews; socialist Zionists called
   for what they called "Negation of the Diaspora." They especially
   decried the association of Diaspora Jews with trading and capitalist
   commercial enterprise, but also (to a lesser extent), private
   philanthropy and civil society organizations of the kind foolishly
   denounced by Israel's socialist Defense Minister Amir Peretz, quoted
   in David's post.

   Despite Peretz's idiotic comments, my impression is that "Negation of
   the Diaspora" and its associated anti-capitalism is a less powerful
   force in Israeli political culture today than it was early in the
   state's history. Hopefully, attitudes like Peretz's are on the way
   out.

References

   1. http://volokh.com/posts/1163735952.shtml

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