This article, from the Summer 2009 edition of City Journal, looks at the accomplishments of Jewish and Israeli people in the field of technological innovation and suggests that hope for the future rests in creativity and prosperity.

Silicon Israel: How market capitalism saved the Jewish state

By George Gilder

The most precious resource in the world economy is human genius, which we may define as the ability to devise significant inventions that enhance survival and prosperity. At any one time, genius is embodied in just a few score thousand people, a creative minority that accounts for most human accomplishment and wealth. Cities and nations rise and thrive when they welcome entrepreneurial and technical genius; when they overtax, criminalize, or ostracize it, they wither.

During the twentieth century, an astounding proportion of geniuses have been Jewish, and the fate of nations from Russia westward has largely reflected how they have treated their Jews. When Jews lived in Vienna and Budapest early in the century, these cities of the Hapsburg Empire were world centers of intellectual activity and economic growth; then the Nazis came to power, the Jews fled or were killed, and growth and culture disappeared with them. When Jews came to New York and Los Angeles, those cities towered over the global economy and culture. When Jews escaped Europe for Los Alamos and, more recently, for Silicon Valley, the world’s economy and military balance shifted decisively. Thus many nations have faced a crucial moral test: Will they admire, reward, and emulate a minority that has achieved towering accomplishments? Or will they writhe in resentment and plot its destruction?

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