Is Israel Going down? (poverty growing, gap between rich and poor deepening)

Yedioth Ahronoth ^ | 04.19.05

[IAF ThunderPilot]

By 2009, Israel will be ranked last among developed countries in terms of government allowances, National Insurance Institute report says; poverty growing, gap between rich and poor deepening.

TEL AVIV - As a result of sharp cuts in government allowances, Israel will be ranked last among developed countries when it comes to government assistance per capita, a National Insurance Institute report says.

The average allowance per child, once the cuts are completed, would stand at 2 percent of GDP, compared to 4.7 percent today.

National Insurance Director General Yigal Ben Shalom submitted the new report, which refers to 2004 figures, to Deputy Welfare Minister Avraham Ravitz on Monday.

“The review indicates that compared to other social services, National Insurance Institute allowances suffered the deepest cuts,” Ben Shalom said.

According to the report, social policies adopted in the past three years worsened Israel’s socioeconomic status as compared to other countries. Moreover, the increasing poverty figures place Israel in the unflattering second place among developed nations, behind the United States.

Should Israel follow British example?

Meanwhile, public expenditure on welfare, as calculated by the OECD, declined from 19.3 percent of GDP in 2002 to 17.7 percent in 2004. Overall, in the past three years child allowances declined by about 40 percent, while unemployment insurance payouts dropped by about 43 percent.

In the early 1990s, about 12.6 percent of Israeli families were defined as poor, compared to 18.3 percent in the United States. However, later Israeli figures grew increasingly similar to U.S. figures.

Local poverty figures have also increased compared to countries like Canada and England, which were similar to Israel in the early 1990s. In Britain, poverty rates were in fact cut down.

The report praised British policies aimed at reducing poverty and says England should serve as a model for a positive socioeconomic turnaround. According to the report, Britain set clear objectives in the fight against poverty, which were closely monitored.

On another front, recent tax reforms benefit mostly the rich and are expected to increase the gap between the country’s wealthy and poor, the report says.

[IAF ThunderPilot]

While this is happening, its interesting to note that between the years 2000 and 2003, the years of the massive Palestinian terrorism (Flow and Ebb events as named by the IDF), the GDP in Israel dropped from $17,500 per capita in Sep, 2000 (until then the highest in Israel's history) to $16,300 per capita by the end of 2002.

From the year 2004 the GDP per capita started to grow again thanks to the calm of the Flow and Ebb events and thanks to the new policy of the Finance Minister, Benjamin Netaniyahu.

The GDP per capita in Israel today stands at $20,300, highest than ever, putting Israel at the 18th place in the world, passing countries like New Zealand and Greece.

[Moral Hazard]

So the National Insurance Institute of Israel came out with a report saying that the National Insurance Institute of Israel isn't getting enough money? What a shock!

[kingsurfer]

The GDP per capita in Israel today stands at $20,300, highest than ever, putting Israel at the 18th place in the world, passing countries like New Zealand and Greece.

____________________________________________________________

That is good. I thought the economy would still be screwed up.

[Chili Girl]

For Later Reading...

[IAF ThunderPilot]

It is, if you consider the article.

[Uncle Fud]

Israel is our strongest ally and I frequently thank God for the IDF, but it's nonetheless true that domestically her economy is bureaucratic, heavily unionized and overregulated to a degree that would bring her to her knees were it not for the outside financial support she receives.

[Ruth A.]

Israel will be ranked last among developed countries in terms of government allowances

And this is a bad thing?

[Alouette]

Israel will be ranked last among developed countries when it comes to government assistance per capita

So the quality of a "developed nation" is rated by the amount of welfare it pays its citizens?

[Alouette]

tax reforms benefit mostly the rich

Why do you suppose that is? Who pays most of the taxes? DUH.

[balrog666]

As a result of sharp cuts in government allowances, Israel will be ranked last among developed countries when it comes to government assistance per capita, a National Insurance Institute report says.

What a success story! Bravo, Israel!

[richardtavor]

I was there in March 2002, and the economy was reeling (I think we were about 1 in 20 tourists in the entire country. We were there again in November of last year, and the difference in the economy was unbelievable (to the good)

[SJackson]

If you'd like to be on this middle east/political ping list, please FR mail me.

[Esther Ruth]

I've recd mail in the last few months from Christian organizations asking for money to help those in Israel who are without food and money, especially children. The needs sounded pretty desperate and serious, out of the ordinary. Could they be exaggerations for some reason, political?? I don't know. The organizations where all conservative.