Israel is a liberal, democratic state based on ethnic nationalism. This is not a contradiction in terms. Nor is it unusual in the world today. The ethno-national type of identity is different from American national identity. But to believe that one size fits all when it comes to national identity is myopic. The tendency of Western elites to value cosmopolitan, universal forms of identity can lead to a kind of "missionary nationalism" that unreasonably stigmatizes alternative forms of nationalism. The paper examines some of the advantages of more ethnically homogeneous states as well as some of the problems characteristic of universalist states. Ethnonational identification can be a source of mutual trust, solidarity, and sacrifice, as well as suspicion, enmity, and hatred.

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Republication, lightly edited, of five essays on capitalism:

1. The Neglected Moral Benefits of the Market

2. Capitalism and Inequality

3. Capitalism and Nationalism

4. The Threat of Democracy to Capitalism

5. Capitalism and the Jews Revisited

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