Economics Matters with Laurence Kotlikoff

Are Netanyahu's Policies Reshaping Israel For the Better Or Worse?

May 21, 2026·51 min
Episode Description from the Publisher

Can Israel reverse its political and social trajectory as elections approach amid ongoing wars and rising international isolation? Economics Matters co-host, Alex Kotlikoff, reunites with Israel's most influential and consequential economist, Eytan Sheshinski, to discuss Benjamin Netanyahu’s long tenure and the impact of his right-wing coalition. The discussion ranges over Israeli domestic policy, geopolitics, the Iran war, and the upcoming Israeli election. Additional talking points include:Polling that shows a narrow opposition edge that would end Netanyahu's 17-year run as Prime MinisterThe impact of prolonged conflict on hostages and society.A brain drain of about 80,000 people since October Economic strains from reservist mobilizationRising debt and deficitsGrowing official and unofficial boycotts affecting academia and Israel’s global standing. Israel-US relations, shifts in American Jewish and Democratic support, and campus antisemitism debatesPreventing Iran from acquiring nuclear weaponsHopes for regional change tied to government change.Time Stamps:00:00 Eytan's history and professional background01:27 Elections and Netanyahu03:02 Coalition and Ultra Orthodox10:54 Judicial Reform Protests12:45 Smotrich Ben Gvir Explained17:27 Cultural Decline Brain Drain21:37 War Economy and Boycotts28:28 Rightward Shift and History33:10 US Jewry and Campus Politics41:05 Iran War and Nuclear Threat47:40 Global Outlook US China NATO49:41 Closing Thoughts and Farewell

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