Alexander Goldfarb was born in Seini, Romania, and emigrated to Israel in 1963. After his military service he worked as an independent building contractor and a certified electrician. Later he worked for the Israel Electric Corporation and became active in the workers union. Alongside his employment he studied business management at the Israeli College of Management.
In 1992, Goldfarb ran in the Israeli legislative elections on the Tzomet party list. In February 1994, he left the party along with Esther Salmovitz and Gonen Segev to establish Yiud. The new party joined the administration of Yitzhak Rabin and Goldfarb was appointed Deputy Minister of Housing and Construction.
When Rabin’s government needed his support in order to approve the second Oslo agreements, which were brought to the government for ratification. Goldfarb promised the necessary majority but only after he was promised a Mitsubishi and a driver. The outcome of the vote was 61 to 59.