which sums up the book how do you report respond to people who expel you and success of achievement, wealth, intellect, do you envy them? and do you hate them and tried to -- do you feel they somehow diminish you? or do you emulate them and admired them and use them as inspiration and learn from them and collaborate with them? that is the essential israel test. >> host: do you see israel to be a country should be emulated? >> guest: yes. israel is the great economic miracle in the world's economy. its per capita income for arabs

and jews. it's higher than germany's, or britons or france or japan. it's the source of many key technologies that drive the u.s. economy. people often imagine that somehow israel is dependent on us. it's just as true the u.s. is dependent on the genius of israel for the most rapidly growing companies in the u.s. economy. for example intel is our leading semiconductor company. intel is really an israeli company. they the integrated circuits in

the microprocessor. but they did notti succeed in supporting intel in its early years. in its early years intel was sustained by nonvolatile members.wh those are what we call flash memories now. that were invented by an israeli who was one of the key figures in the early intel. the first several years of into came from these. they then established which is aware intel chips the leading of the chips are manufactured. and many leading microprocessors

were designed at their israel design center. of course intel is an american company but it is also an israeli company. and google, google maps and everything and always is an israeli company that's run by google that makes possible all of the features of google maps. an google has this intel i'm sorry ibm has a crucial design centers in israel. in many of our leading medical technologies. pfizer, astrazeneca, all of the

various were invented in israel largely. i was a great advocate of sdi. i actually showed ronald reagan his first in microchip and said this would enable strategic to intercept missiles as they came in. but the u.s. never really developed there is too much bureaucracy. the israelis were partners from the beginning. they were the only partners and then they created the iron dome. and david sling and arrow three the strategic defense of vindication of reagan's vision intercepting missiles from iran

and the current war in the middle east. >> host: and factory right when it comes to that issue if that should ever occur in all out missile attack against the u.s., israel technology will be the reason we likely survive. >> host: george gilder you said the israel test is also book about philosophy. what do you mean? >> guest: my favorite chapter probably is on jon vannoy men. jon vannoy men was the originator of information theory. and he results is one of the key figures in the manhattan project which saved america during the second world war. jon vannoy men started as an ally of tilburg.

who believed in eight determinist mathematical model of the universe. and vannoy men gives the crew back in 1931. and it showed no intellectual system, no conceptual system can function without propositions outside the system that can't be reduced to the system. and vannoy munn was chief ally and trying to reduce all science to a single mathematical scheme it. and he realized that he was 20 years old when he offered and no one in the room really

understood its significance. abandon the scheme that it was his life pursuits. and decided distributed computation would be possible. you could have as many computers as they were human minds. and it was ultimately reliance on states. could have a system of a adeterminate system that explained everything. you could not have a singularity as they call it now in order for intelligence. jon vannoy men who really invented the modern ointment computer model. and also the non- commuter model

which is a parallel process. you find at nvidia and the data centers. he also invented that. that he also chose to keep a paperthat explained neural netw. which was non- baud model. all intellectual activity i tell that story. >> host: as one of the world's most profitable economies, built on one of the world's most barren territories, israel challenges all of those materialistte superstitions of zero-sum economics. based on the distribution of

natural resources and the exploitation of land. >> listen, israel has less land than anyone else just about 4% of the middle east land. and yet, its economy is worth half a trillion dollars or more. it's market cap is bigger. it's a key force in the world economy. and it shows ultimately wealth from human mind. because jews are .04% of the worlds population. but seven out of half the nobel prizes are won by jews. seven out of the top 10 richest men in the world are jews.

jews lead many of the leading companies all around the world. and this is what the world faces in israel test. so whether you admire these people and learn from them and collaborate with them, and extend your own opportunities and your own horizonss. i was that you resent them and d try to tear them down. and that is really the israel testament my book is about. >> host: you write the central air of israel's defenders is to accept the framing of its debate by its enemy whose idea is peace depends on a marginal but perpetually elusive improvement. yes, it's just really absurd. this is my latest version.

it's revised and updated a lot in his got a new introduction by dennis prager. and when i did the first edition, i gave this speech in rockaway and queens to a synagogue. and after it ended i lined up to sign the books. one of the people gave me this little beat up volume published in the 1940s by walter lowder melt. he was the agriculture economist in the roosevelt administration. he was responding to the crisis of the dustbowl. which was a real climate catastrophe back in the 1930s of which was threatening american

agricultureoc production and wreaking havoc in the west. until he went around the world for the department of agriculture. and ended up in israel and discovered fabulous agricultural invention d that made the desert bloom. it's all in his book and has expounded in detail with agricultural agronomy and sophistication and shows how this has continued. israel still makes the world bloom. while it's economy has increased to 60 times its productivity by

a factor of hundreds. the use of water has diminished 10%. it's agricultural production is up 16 fold. but its use of water is actually down 10%. so israel shows the water crisis or a resource crisis or a population crisis, or whatever are all empty if you affirm that genius of human beings inventing new technologies and making the deserts of our lives bloom with more possibilities, capabilities, and opportunities.

new horizons for human creativity. >> spew it one more quote from the israel test. instead it would find in the u.s. is not the immense gratitude that israel deserves that insidious of abusive contents detailing the elected of israel.eep sense having built the world preeminent high-tech economy on amiri 4% of middle eastern territory israel is denounced from continental america and somehow too big to even staunch israel supporters and to bend over backwards to conceive israel deserves intensive criticism for much of its behavior. >> guest: it is an amazing thing to observe. i mean this is, this is israel has been invaded six or seven times over the years. from the same jihadist.

and somehow they are to blame for responding for the sixth terrorist invasion or -- i mean it is really quite incredible. particularly when you realize the arabs in israel are the richest and longest living arabs in the world. there arere more than 2 millionf them. they are 16% of the workers and israel has taken among the most prosperous people in the world. those are the arabs of israel. stuart george gilder is the author of the israel test how enriches and challenges the world. he spent a few minutes here with

us about tv. >> guest: thank you so much, peter. ♪ [background noises] sue went german author german book publisher 28 books. twenty-nine the 29th of book is this why did you choose to write. >> first of all he makes economic freedom from the heritage foundation. it's ranking every year how free country.t to compare different countries that compare over time. you will find no other country than pull it poland in vietnam increase so much over the last decades. i will give you an example. the united states has the worst ranking 1995.

if you compared to 99. at the same time. curious to find out more about this country and what other peopletn know. the first country in the world all african countries first and only thete war of the united states but with france, japan, china, what was not destroyed by the war it was destroyed by the bad economy. they came out seeing the first country in the world in 1990. they started free market. prophecy of the economy for investments. and this is amazing for the number of people living in poverty decreased from 80%, to less than 5% today.

they call themselvess socialists today. don't believe it. i have been there. it's easier to find a marxist they note socialism is. >> you right in your new book that vietnamese economy is one of the most open in the world. at the same time they're not holding democratic elections. is that correct? >> yes. between politics on the one hand that's a one party system. that newspapers are owned by the government. you distinguish the economy but not politics this is true. poland lost one of the first

countries in europe since the 80s. even in h the '80s people had to stand for hours and hours to get something to eat in the 80s not in the 50s. and then premarket reform. an economist who believes and now in three decades to vietnam. it's gone hand in hand to poland. this is the difference to vietnam. >> poland you write is more economically free than spain, israel, france, or italy. is it due to the finance minister in poland? or was there a seachange in the

approach to economics? >> this started in the '90s last 50 years not much has been done on that piece party. the naturalize something. what has happened they did so much they could do more as always. but poland is in a race the expectation for traveling 0.1%. poland is 2.8%. why is that? switch to an germany with climate change and topics of what they did in terms of

orchard pesach nuclear power plants picture pesach coal power plants. and now they ban the registration. poland is not pragmatic. the migration policy. we welcome people a lot of them are owned already on social welfare. but not for everyone. people who come from other countries work there and poland. they have not such a big welfare state as we have. two but if you were to build a factory to make a wages wouldn't you rather go to poland where the wages would be lower and the restrictions lesson germany? is this part of their appeal?

>> guest: absolutely. i was prepared to go to poland. companies are leaving germany. the companies that rely heavily on electricity price they are leaving. the biggest company in the world and now they go to china because there's less bureaucracy in china. and the electricity is much cheaper. this is a problem. steve went for direct investment is in the topic of your book. how nations escape poverty. what is the importance of fdi? >> guest: very good question. i would compare them with another country. what other countries is nepal one of the 10 most in the world.

they have a lot of restrictions. they see investors as the enemy. they have a lot of regulations. they welcomed them how can we attract more foreign investors croatia from the united states ground zero. this is a difference because a lot of countries do not understand it. you have to embrace them. another thing that is different is and the '90s that could have claimed the united states because of the war. if you know this number in the vietnam war 10 times more bombs

exploded from the united states than in germany. they couldn't blame the united states but they did not do it. there always like a victim. are we a victim, slavery, sometimes it's 50 or 100 years ago.mo we went more development and aid.d. they never saw them as. victims. they saw this was a crazy economy. this is same for individual. if you want to change your life i am a victim of racism and whatever. we do not change anything in your life. you take the responsibility for your life. then you can change that with the same formation. >> host: would you say it's a fair comparison to say that

vietnam today or in recent history is comparable to germany post world war ii and the economic miracle in a o sense? some things are different. the national socialists with capitalists and what they did not have. but of course the approach of the economic freedom and property is what makes this a success and another thing they have in common they inspire rich people. they inspire entrepreneurs. and often other countries about the attitudes of wealthy people. like it france, germany, which are scapegoats?

how can i become rich? everyone wants to become rich. i was invited which one of the most prestigious universities. how can we improve the image of rich people? can you imagine how cute weak cp i was invited to germany to a discussion. how can we take away from rich people the attitude is also. this is similar and poland. in a poland they keep it very positive. not a scapegoat. they have a lot of things in

common. the reason why took them together in the book. [inaudible] a lot of people don't know than anytr other they have socialism starts with economic reform. i think a lot of other countries for them and i hope a lot of young people in the united, states read this find a capitalist it's not right. >> do trade deals make a difference? the u.s. did not sign a trade deal with vietnam. but the eu did.

>> no, i had a free-trade deal in the united states with the unitedav states. have more free-trade than i think any other asian country. >> host: what does that mean to have a free-trade agreement? >> not so much that even now they this was wrong. they accepted. they are more free than china. [inaudible] but now with xi jinping goes back in the wrong direction.

there is a slow escape from china. because it is more free. it's not as it is here in the united states or europe. smart free than china. and google and others in china is not possible. it's not allowed. >> is it beneficial in your view for poland to be a member of the eu? >> partly yes, partly no. yes because they've also got the other parts. on the other hand, we have these crazy decisions of the european commission. how's every economy inside eu. i will give you one example.

there is a part of the registration in europe. it's all of the c countries. poland is so dangerous as for my country but for us, for germany it's voluntarily. surprised oh no we have registration of combustion engines. everything only electric. and he's happy about this? china they produce a much cheaper cars, electric cars that we do. isn't that crazy? it's not easy it causes also a lot of problems. ask the general reader