Shomron Center for Economic Policy Research

In Search for an efficient Institutions

May 8, 2022
by Moshe

Hamas threatens to swing the gates of hell open for Israel … again?

Opposition MK presses the Government of Israel to kill Hamas leaders after a series of murderous terrorist attacks. Prime minister Bennet could be personally interested to kill Hamas leaders due to save his shaky Government or, in the worst case, to strengthen his bleeding Yamina on the eve of new elections.

Hamas leaders just made these simple political calculations and have become very unhappy. They threaten Israel with “regional earthquake’ if leaders assassinated”.

It is a good time to remind what actually had happened after Israel (then prime minister A.Sharon was in charge) had annihilated sheikh Ahmed Yassin – “spiritual leader” of Hamas March 2004 and then, just in a few weeks killed the operative chief of Hamas Abdel al-Rantisi. Hamas had threatened “to swing the gates of hell open for Israel“.

Actually, something opposite has happened. Hamas had switched resources to prepare an attack against Fath (capture of Gaza strip) and substantially limited its’ terrorist activities (see here fig. 1).

April 17, 2022
by Moshe

Coercive Policies and Some Reactions to the Coercion in the Time of COVID-19 Pandemic: update

Since votes at Hungary Parliament Elections and 1st Round of Presidential elections in France have been counted, the paper “Coercive Policies and Some Reactions to the Coercion in the Time of COVID-19 Pandemic” (supplementary to our “COVID-19 Library. Filling the Gaps“) has been updated.
1st Round of Presidential elections gives the best opportunity to observe the current ideological preferences of the citizens of France. There is quite a significant number of politicians are registered every time to run, representing all significant positions from across the political spectrum.

In the 2nd Round, acting president – the promoter of lockdowns & compulsory vaccination M.E. Macron has faced the candidate with a dissenting opinion, endorsed by E.Zemmour and Dupont-Aignan (among the 1st Round candidates – 9.2% combined). M.E. Macron won endorsements of traditional parties (Republican and Socialists’ candidates; the Green party candidate also endorsed Macron, 11.1% combined), while 3rd leader Mélenchon has called to vote against Le Pen.
Macron won the support of 58.54% of voters in the 2nd Round of Elections, M. Le Pen 41.46% (66.1 : 33.9 respectively in the 2nd round of 2017 Elections ). So, it is clear, that a sizeable share of Mélenchons’ 1st round voters had voted for Le Pen in the 2nd Round. One cannot say for sure, how many of them voted against their favorite candidate’s recommendation because COVID-19 policies were an issue of crucial importance. The speculation on the share of staunch opponents of coercive policies in France is well above 5% and, maybe even making up to 10% looks quite reasonable.

March 1, 2022
by Moshe

We can’t afford more economic nonsense. New Position Paper on lessons for Israel from Ukraine invasion of Putin

Socialist, ‘green’ experiments had weakened Western economic power and emboldened Putin. Economic power is one of the key advantages of Israel in the Middle East and the basis for our military power. We can’t afford useless and dangerous political decisions harming our economy. We can’t afford to burden our business with heavy unjustified and frivolous regulations. We must scrap all these nonsenses for the sake of our economic growth and, first and foremost, for the sake of our security.

Position paper “Learning the Lessons from the Ukrainian War for Israel economic Policies. We can’t afford more economic nonsenses” strongly recommends:

To encourage development of gas industry on the reliable basis of well-defined private property rights on gas fields.
To scrap sophisticated, burdensome, and generally useless regulations imposed on business. To repeal ‘traditional’ – above-mentioned business regulation is needed as well as elimination of the ‘new’ regulations restricting private freedom under the pretext of ‘anti-discrimination’. To repeal ‘COVID-19’ coercive measures – let return right to decide to the patient and to his doctor (to vaccinate or not, if yes – how many times, to use old fashioned or newly invented drugs, etc.).

Reserve link to the paper.

February 27, 2022
by Moshe

Few Lessons from Ukrainian War for Israel

We can’t afford more economic nonsenses

Weak leadership and socialist policies of the Western Governments, weak Ukrainian economy and Army, and rapid increase in gas-oil incomes combined, had encouraged Putin to start his all-out war against the neighboring country.

D.Trump[1] had provided a simple and highly relevant explanation of Putin’s bold assault:

Russia has become very … rich during the Biden Administration, with oil prices doubling and soon to be tripling and quadrupling. The weak sanctions are insignificant relative to taking over a country and a massive piece of strategically located land.

Now it has begun, oil prices are going higher and higher, and Putin is not only getting what he always wanted, but getting, because of the oil and gas surge, richer and richer. The U.S. was energy independent under the Trump Administration, an independence that we had never obtained before, and oil prices would have remained low…”

Israel’s Government had stopped exploring our gas fields for purely ideological, not economic, or security reasons.[2]

The only reliable scientific (economic) advice on how to encourage both, economic progress and a cautious approach to the environment is to secure private property rights and to provide well-defined delimitation of these rights on lands, forests (case of Finland), etc. Secured and well-defined for generations property rights cause strong personal interest to care about clean air and water (see, first and foremost, classical Ronald Coase book (Coase, 1988[3]). The governmental care on the environment manifests clear case of ownerless property, therefore, ownerless ‘public’ resource is routinely doomed to predatory use.[4]  So caring government can’t prove success in environment protection comparable to privately owned lands and forests.[5]

We had imposed a heavy regulatory burden on our business.[6]  The business climate in Israel is rated among the worst among developed countries (OECD members) and far behind some developing countries (like Georgia).

In addition to ‘traditional’ (Doing Business measured) costs: “trading across the border”; “registering property”, “getting electricity”, “Construction permit” etc. our business suffers the heavy burden of ‘anti-discrimination’ control, manifesting, in fact, assault on freedom of private contracts.[7] 

Last, but not least, we shocked our economy numerous times without any scientific foundation by lockdowns (see for references the Library, III.3 and latest update February, 16)[8] Then we assaulted businesses and households by useless coercion to vaccination.[9] To say nothing on surprising preference expensive experimental vaccines to reliable old and cheap drugs outlawed by healthcare bureaucracy.[10]

All these wrong decisions sent a message of weakness to our numerous enemies, encouraging their resolution to invest in wars against Israel.

We need further development of the gas industry on the reliable basis of well-defined private property on gas fields.

We can’t afford sophisticated, burdensome, and generally useless regulations imposed on business. We need to cut off ‘traditional’ – above-mentioned business regulation costs and eliminate the ‘new’ regulations restricting private freedom under the pretext of ‘anti-discrimination’.

We can’t afford to waste resources on ‘COVID-19’ coercive measures – let return right to decide to the patient and to his doctor (to vaccinate or not, if yes – how many times, to use old fashioned or newly invented drugs, etc.).

Drop all this nonsense, break with self-destructive policies now, send the most impressive signal of our force to our enemies.



[3] Coase R.H.. The Firm, The Market, and The Law, Chicago, IL: University of Chicago Press, 1988.

[4] See: Hardin  Garrett. The Tragedy of the Commons. Science, New Series, Vol. 162, No. 3859 (Dec. 13, 1968), pp. 1243-1248.


[6]  Doing Business (WB Project) measures in days/money costs of doing business in Tel Aviv; the worst situation in “trading across the border”; “registering property”, “getting electricity”, “Construction permit”; (the country rated below “the most free” group); Fraser Institute “Economic Freedom in the World” – 2019 Israel is rated 43rd

[7] See Block Walter. The Case for Discrimination. Auburn, Alabama: Ludwig von Mises Institute, 2010 and a case of 2013 analysis: Block W. Are Criminal and other Background Checks Racially Discriminatory? 2013:

[8] Yanovskiy M, Socol Y. “COVID-19 Library. Filling the Gaps’”  and Yanovskiy M.  “The Latest Update for ‘COVID-19 Library. Filling the Gaps’” respectively.

[9] The same “Library” III.5, IV.5   “Mandatory vaccination’

[10] The same “Library“ III.6.

February 19, 2022
by Moshe

‘Liberal’ Emergency Power to quell peaceful protest in Canada

Liberal Government of Canada: Emergency Act to quell peaceful protests
State Emergency to save mandates

The Epoch Times


Provincial prime ministers’ opinions are divided, while Ontario prime minister promises to lift vaccination passport effective since March, 1, 2022.
‘We Will Hold the Line’: Freedom Convoy Organizers Say They’re Not Deterred by Emergencies Act
Police Assault on a peaceful gathering
Police arrest top Freedom Convoy leaders in a sweep of protesters Chief vows to end demonstration against COVID vaccines this weekend February, 18


Pay attention, the ‘Liberal’ Government is not bothered to bring its’ ‘Emergency Power’ to Parliament vote by the date.

For updates on ‘liberal’ oppression in old Democracies for the sake of ‘corona-safety’ see our notes ‘Coercive Policies and Some Reactions to the Coercion in the Time of COVID-19 Pandemic

“When violence intrudes into peaceful life, its face glows with self-confidence, as if it were carrying a banner and shouting: ‘I am violence. Run away, make way for me — I will crush you.’ But violence quickly grows old,” Solzhenitsyn wrote in Live Not By Lies. “After only a few years it loses confidence in itself, and in order to maintain a respectable face it summons falsehood as its ally — since violence can conceal itself with nothing except lies, and the lies can be maintained only by violence. Violence does not lay its paw on every shoulder every day: it demands from us only obedience to lies and daily participation in lies.”

February 14, 2022
by Moshe

COVID-19 Library update and Supplementary materials

The new updated version of “COVID-19 Library. Filling the Gaps” contains important references on the mandatory vaccination issues. Mandatory vaccination by the experimental vaccine (FDA and CDC agree that “Information is not yet available about potential long-term health outcomes…”) looks highly problematic.

“Economic impact of lockdowns” section now includes the reference on important piece penned by Marek Dabrowski “Fiscal arithmetic and risk of sovereign insolvency“.

The new Supplementary material to the Library “Coercive Policies and some reactions to the coercion in the time of COVID-19 Pandemic” is basically consisting of the references’ collection, providing information on political actions / public reactions on leading established Democracies’ coercive strategy for response to COVID-19 pandemics.

The separate small paper is available at SSRN contains new important references not included by the moment in the “official” text of the Library.

May 31, 2021
by Moshe

What Happened to the “Torch of Liberty”

I proudly present our new article “What Happened to the “Torch of Liberty”: Russia’s Lessons to Learn From 3 November 2020″ just published in Electoral Politics Vol 3 #1(5) 2021

The article provides an overview of the issues of the 2020 US presidential election, which were an encouraging signal to dictators of the world. The mass removal of observers from one party from the premises where the votes were counted resembles a familiar sight from the elections in Russia. The widespread introduction of regulations that obviously facilitate electoral fraud on the pretext of “facilitating” the turnout of very small extra groups of voters jeopardizes the certainty of the outcome of the choice made by all other voters. Mass postal voting with an unprecedented low percentage of rejected ballots, voting without identification cards, ballots collected by unofficial collectors – these and other novelties are now proposed to be established as a federal standard. Federal election law is expected to include mandatory federal campaign funding, as well as provisions that are poorly compatible with First Amendment law. Large-scale radical federal intervention in electoral law is unprecedented in US history and breaks with a respected tradition of high state autonomy. All of these measures are accompanied by actions that disappoint the friends of the United States and openly aim to break from the legacy left by the founding fathers of the Great Republic.

April 12, 2021
by Moshe

Experts and Science under COVID-19: The Curse of Government funding?

I’ve noticed the following conflict of interest reporting puzzle, working on “COVID-19 Library. Filling the Gaps“. Almost all the “people of Science” rallying around never proven efficient harsh measures empowering the governmental bureaus and, at the same time getting funds from the budget under the auspice of the same bureaus, surprisingly never declared their conflict of interest. They are interested in more and more funds from the budget, so they are pushing more powerful, ‘bigger’ and ‘bolder’ unlimited Government and not feeling any problems in this regard.

Diagram 1. Voting History of Federal District of Columbia. Sources:;

So it isn’t surprising they are ready to be aggressively partisan (say, anti-Trump in the USA sharing preferences of Washington bureaucrats – see FDC voting history). Worse, the “cancel culture” and the war on “whiteness” looks like destroyed the residuals of moral self-restrictions, so the authors proving the loss of social-economic status (SES) harming health and life expectancy badly could publicly denouncing Trumps’ statement ‘We cannot let the cure be worse than the Problem itself to claim that the crisis is good for health and even to reference on their own book proving the opposite (see for details Who Teaches the Fact-Checkers or Why Trump Must Be Wrong?

The Omnipotent Government push for government-run Health care making the Doctor to greater extent bureaucrats, not accountable to the patient and to the society noble expert. Mandatory vaccination spoils pharmaceutical firms incentives as to invest in the desirable political decision-making turned to be more profitable than in R&D, to say nothing on information for consumers about vaccines for really informed consent). Mandatory healthcare causes dangerous temptation for physicians and a really big threat for patients. Informational Asymmetry Problem became more and more grave and troublesome for the patients. While under free society and democratic rule information asymmetry problem is mitigated more or less successfully by a number of reliable, tested solutions, under totalitarian rule, doctor-patient asymmetry not counted as a problem at all, at the best (see for details “Institutional Aspects of the Power Abuse Problem in Healthcare Under Totalitarian Rule: Case of Nazi Germany”

April 11, 2021
by Moshe

COVID-19 Library: Filling the Gaps

Here is our mini-library (collection of references), filling some gaps in the current discussion of the COVID-19 crisis.

“Intellectually, the greatest benefit I derived from the experience [of working in the office of President Ronald Reagan] was to be able to observe at close range how political decisions are made at the highest level. … I thought that high politics resulted from a careful, inductive process by virtue of which all the information available to the government is conveyed upwards and there subjected to judicious analysis, with all the pros and cons weighed until a decision is reached…. Reality turned out to be quite different.”

Richard Pipes, Ronald Reagan’s adviser

“Vixi: Memoirs of a Non-Belonger”. New Haven: Yale University Press, 2003, p. 208

Presented material contains numerous references on articles, papers, data, and books relevant to the current discussions around COVID-19 medical and political responses on the pandemics.  The principal purposes of this collection of references are:

  1. To fill (at least, partly) huge gaps in current discussions on COVID-19, often based on never proven assumptions, like the feasibility of stopping a respiratory infection by means of lockdowns.
  2. To present and highlight some crucially important factors that had been discussed in the scientific literature for decades, but totally ignored by most governments in their decision making – for example, the very strong dependence of healthcare progress on economic progress, and the very strong dependence on both economics and healthcare on safeguarding personal rights and property.

We find astonishingly strong leaning of politicians and public healthcare officials to never-tested responses, potentially more dangerous than the disease itself. In our opinion, the special interests of decision-making groups may provide a partial explanation of this phenomenon.

We will greatly appreciate our readers’ criticism.

March 17, 2020
by Moshe

Are we ready to lose the Opportunities unleashed by COVID19 Crisis?

As every crisis, current COVID19 pandemic causes economic setback, fuels demand of special interests and emboldens bureaucrats’ claim for more and more discretionary power. But the same crisis brings not only heavy losses for all the countries, but opportunity to succeed also. The opportunity to succeed will not need heavy governmental spending but it will require termination of various practices harming both business climate and public morale. Deep deregulation and respect of freedom of contract, termination of violation of freedom of private choice under pretext of ‘fighting discrimination’ will benefit the courageous society and will pave the way for lasting prosperity.

The following moves and measures are recommended:
Repeal of modern ant-trust legislation and disbandment of ‘Anti-monopoly’ authorities;
Nature, environment protection will be vested to private interests, based on privatization and due delimitation of the property rights (including forests, lakes etc.), responsibility for negative externalities established in the court disputes; respective governmental bodies disbandment;
‘Anti-discrimination’ through ‘positive’ discrimination legislation repeal and abandonment the respective policies, liberalization of real estate and Labor markets
Limiting the scope of [welfare state] activities and responsibilities of the Government, respective Balancing of the budget under moderate tax burden.
Abandonment so called ‘stimulus’ Governmental policies.
General repeal of business regulations through Idaho pattern – based solution (for Israel – Basic Law: Freedom of Occupation (1994) Amendments – new Edition of the Basic Law).
All above mentioned measures would lay solid foundation for healthy, sustainable economic growth in Long ran and will attract direct investments in the country in short and medium ran period, exploiting opportunities lost by the rest of developed nations and the opportunities unleashed because of weakening PRC competition for the investments caused basically by worsening of guaranties for private property in the communist China and, currently, – by the panic, caused by COVID19.

The paper, presenting the proposals and providing some materials to support it one could find at SSRN site.