It’s frustrating to witness financially successful individuals who neglected to save and then seek public handouts or debt forgiveness. Equally irritating are those who haven’t contributed to public funds yet rely on welfare.
While it’s understandable that many expect state support in crises, the state is a temporary safety net, not a permanent provider. Increasingly, it has become a continuous income source for many, sometimes by choice, leading to budget issues, high taxes, and growing debt, with blame often misdirected.
A high cost of living isn’t unavoidable. It’s a result of an economic policy that talks of a “free market” but maintains heavy regulation, citizen dependence, and a reluctance to accept the costs of economic independence.
Let’s take Israel as an example: Early Israel had a far-from-free economy with significant government intervention and monopolies.
While progress, especially after 1977, brought more economic freedom, it has been inconsistent, with political compromises often hindering true reform. Since Lieberman’s time as a free-market advocate, government intervention has unfortunately increased across various sectors due to special interests.
A free economy is an economic system based on the principles of private initiative, free competition, and minimum government intervention. In such a system, prices are determined by supply and demand, and consumers enjoy a wide range of products and services at competitive prices.
In the Israeli reality, the public wants low prices – but without paying the price. Many in Israel demand a “free market” only when it concerns their cost of living. They want low prices – but without allowances being harmed, without regulation being reduced, and without real competition that would destabilize established players in the economy.
A free economy is a way of life, not a shopping strategy.
Don’t pay? Then don’t demand
On top of all this, there are those who do not contribute to the system: they do not work, do not pay taxes, do not save, and do not participate in the economy. Non-contributors can’t demand support. A free economy is not charity. Whoever does not contribute to the public coffers cannot demand from it.
A free market cannot exist without an informed consumer. But in Israel, parts of the public are not even required to learn basic core subjects. There is no financial education in schools, no understanding of credit, interest, or insurance. Without tools – there is no responsibility.
The state provides aid but under-invests in preparing citizens for the economic realities. A true free economy means personal responsibility: saving for the future, budgeting effectively, understanding financial obligations, and planning ahead instead of seeking sympathy after a crisis.
What can be done?
The public: Take responsibility: save, plan, and don’t expect constant support.
The government: Invest in financial education, dismantle monopolies, remove barriers, allow imports, and address market failures.
National consciousness: Shift perspective. A welfare state is temporary support, not a permanent solution. Allowances are a bridge, not a foundation. Without personal responsibility, a free economy is just words.
John Lennon once said, “You may say I’m a dreamer” – and it is likely that many of you will think this is unrealistic. But the simple fact is that about 80% of working secular people are ready for a real change – focusing on life itself.
The writer is deputy CEO of Insurtech Israel.