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Culture War Roundup for the week of November 7, 2022

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Most of this website understands that a) intelligence tests have predictive validity and b) that Ashkenazi Jews, as a group, have extremely high average intelligence. Given these two observations, one would expect the country with the most jews-per-capita, Israel, would have a tremendous amount of human capital. I would expect, knowing nothing else about the country, that industry there would thrive and the wages in that country should be among the highest in the world. But wages there aren't that high: the GDP per capita in Israel is broadly similar to an average European country like Belgium.

What could be the cause of this? Ashkenazi Jews make up around 2% of the US's population, but due to their high intelligence, worth ethic, and culture, have a large percentage of positions of power and prestige in the US. You would think that Israel, being 33% Ashkenazi Jewish, would have tremendous number of brilliant 130+ IQ middle-and-upper class, and I'd expect Israel to be a tremendous source of intellectual and economic might in the European region as a result (kind of similar to Singapore or Taiwan in Asia, but with even more economic and technological prowess).

What explains Israel's economic and technological mediocrity? The rest of Israel's demographics are largely Mizrahi Jews and Sephardic Jews, as well as 20% arabs. Mizrahi and Sephardic jews have around an IQ of 92-ish, whereas Arabs have an IQ around 80. Which means that, overall, the IQ for Israel is estimated to be around 92. But even still there are a lot of very bright people in Israel; it should really be a bigger economic powerhouse, but it isn't. Can anyone help me to understand why? Are international corporations just not leveraging these untapped intellectual resources properly? Or does the presence of some dumb people in your society prevent the 30% of the very-smart people from successfully starting businesses/reaching the level of international influence that they otherwise could?

tl;dr: Israel isn't a big economic superpower. Why?

Politics: small countries need big friends for investment, trade, etc., and Israel is politically radioactive over the Palestine issue. Moreover, because all of Israel's neighbors in the region either actively despise it or grudgingly strike cynical realpolitik deals with it, it can't operate as a regional trade, manufacturing, or services hub the way other powerful small countries do.

Natural Resources: i.e., Israel doesn't have really any, and doesn't have the oomph to secure it's own supply chain from neighbors. This includes very important things like energy and water.

Geostrategic Considerations: Singapore controls one of the most heavily-trafficked shipping lanes in the entire world, as well as having British colonial legal traditions and political relationships, Chinese-diaspora economic acumen, and access to the cheap labor and developing natural resources of most of South-East Asia right next door. Israel is in a backwater part of the Mediterranean, with access to the Red Sea and the Horn of Africa thrown in as booby-prizes.

Security: Israel obviously is not in a great neighborhood, security-wise, and is also involved in at least three cold wars (Iran, Palestine, Lebanon) which could turn hot any moment. Thus, it is not an attractive target for investments in expensive, complicated, easily-damaged industrial plant, and has to devote far more of its resources to defense than comparator nationstates.

Social Unrest: Israeli politics and society are actually strikingly fractious, and significant portions of Israel's population think that economic activity is at best a second-place good to studying Torah and Talmud. Worse, because of the state's ethnic and religious affiliation, such groups have solid claims on public support for their underperformance.

Etc., etc.