Bennett Pledges Economic Overhaul, Linking Benefits to National Service

Former Israeli Prime Minister Naftali Bennett, now seeking to lead the government, has outlined a comprehensive economic platform centered on integrating the ultra-Orthodox community into the workforce and military, reducing regulation, and lowering the cost of living. Bennett argues that the current situation, where a significant portion of the population does not serve in the military or contribute to the workforce, places an unsustainable burden on the economy and harms productivity.

Bennett proposes a system where benefits, including financial support and potentially pensions, would be conditional on national service. He stated, "Whoever does not enlist will not receive a penny," and "Whoever does not work will not receive an allowance." This approach aims to incentivize participation rather than relying on enforcement. He also plans to condition funding for the ultra-Orthodox education system on the inclusion of core subjects like math and English, with a goal of full integration within eight years.

Addressing the high cost of living, Bennett plans to combat monopolies and increase competition, particularly by facilitating imports. He also intends to reform the public sector, which he described as inefficient and politicized, by implementing AI-driven systems and reducing bureaucratic hurdles. Bennett believes these measures will boost economic growth and productivity without necessitating tax increases, citing his previous tenure where he claims to have turned a deficit into a surplus.

Furthermore, Bennett expressed concern over the state of the high-tech industry, attributing its decline partly to the previous government's judicial reforms and political instability. He aims to restore confidence and encourage the return of Israeli tech talent and companies by ensuring regulatory certainty and a stable government. He also pledged to reduce housing prices by up to 30% through increased supply, including 100,000 long-term rental units, and by streamlining land allocation for construction.