Capitalism created, undoubtedly, the most momentous advances in human welfare in the last millennium. In less than three centuries, it has extended and enriched human life to a greater extent than in the former ten millennia. Liberating masses of people from slaving for mere survival, it has provided many with unimagined wealth and with the potential to do both good and evil on an unprecedented scale.

Like all spontaneous human creations, capitalism was a protracted, complex incremental, perhaps unique, process. It was propelled after 1750 by gains in knowledge, especially in technology. Yet, while both were necessary prerequisites, they were not sufficient by themselves. China, Greece and the Islamic world all excelled in them, yet failed to create sustained economic growth.

As a result of last fall’s violence and the ensuing efforts to rescue the peace process, security concerns have once again eclipsed all other public policy issues in Israel. Despite years of talk about the need for economic reform, therefore, major changes are not likely in the near future. But once the government of Prime Minister Benjamin Netanyahu has some breathing space, there is reason to hope he will do more than talk.