Thursday, September 14, 2006

Ehud Olmert to Increase Welfare Spending

Not only did Israeli prime minister Ehud Olmert prove to be a incompetent war leader, but according to Morgan Stanley's latest analysis of the Israeli economy, he now also seems intent on reversing some of the successful free market reforms that Binyamin Netanyahu implemented during his time as Finance Minister. The reason is that his centre-left government worry about increased poverty in Israel.

Morgan Stanley reiteras much the same analysis that I did a while ago, namely that poverty in Israel is mainly concentrated to 2 groups: Arabs and ultra-Orthodox Jews, and that their poverty is largely the result of their own lifestyle choices, which is to say they have a lot more children than Israel's secular Jewish population. This means that their poverty is self-chosen and that they have really no right to demand that secular Jews should compensate them for this. But since Arabs and ultra-Orthodx Jews vote for parties- the distinctly Arab and ultra-Orthodox parties as well as the left-wing Labor and Meretz parties- that demand increased welfare spending, this is what could happen anyway, especially since many secular Jews feel a misguided willingness to agree to these demands and also support Labor and Meretz.

Morgan Stanley also notes that welfare spending have been counterproductive in solving the fundamental causes of poverty and that Netanyahu's reforms have had positive results in the form of higher growth and falling unemployment and that these new policies risk reversing some of these positive results.


Anonymous September said...

Apparently you are unaware of the fact that Israel is an apartheid state, where Arabs are constantly discriminated against. One way is when employers list completed military service as a criterion for an applicant; Arabs are usually prevented from doing military service.

Then again, faux right-wingers with Marxist social values tend to love Israel - since they drool over strength and success, and don't care that Izzy's money comes from Western taxpayers and the sweetdeals it gets with the West, thanks to the Izzy lobby in the U.S. and the Jewish media owners - and ignore these little inconveniences, as well as the brutal occupation of what little land the Palestinians have left, while crying out loud about "racism" whenever a Swede suggests the government-planned invasion of Sweden by foreign peoples be curbed. All in a day's work for the fake freedom-lover.

2:46 PM  

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