Israel's economy, 60 years on - Out of a rough beginning comes prosperity, and some global respect

MarketWatch ^ | May 11, 2008 7:00 p.m. EDT | Amotz Asa-El

[Ernest_at_the_Beach]

TEL AVIV (MarketWatch) -- Israel was born not only into war, carnage and controversy but also into shortage. Shorn of cash and goods, it had to ration meat, eggs and cooking oil through a coupon system that soon generated undernourishment, bread lines and a thriving black market.

Worse, lacking allies, trade partners and natural resources while swamped by poor immigrants, the Israeli economy was also burdened by its leaders' rigorous socialism. Central planning initially generated growth, but Israel's protectionist duties, sclerotic financial system, high labor costs, bloated public sector and exorbitant defense spending soon proved untenable. By the 1980s the stock market had collapsed, the major banks were nationalized, inflation hit 440% and foreign-currency reserves all but vanished.

As Israel celebrates its 60th birthday memories of this economic desolation seem exotic.

The shekel is now one of the strongest currencies in the world, inflation is 2.5%, last year's 5% growth was the developed world's highest for the fifth consecutive year, while unemployment slid to a 15-year low of 6.5%. While analogous in some ways to other economic miracles, Israel's is still politically, socially and culturally unique.

First, Israel's politicians produced a shock therapy unprecedented in its severity and effect. It came in two installments: first, in 1985 the government of Shimon Peres abolished overnight a slew of food subsidies; froze by decree all retail prices as well as public-sector wages and hiring; slashed the defense budget by 20%; hiked interest rates, and then allowed the Bank of Israel to manage monetary policy independently. The government also began to slash duties, sell assets and de-regulate the bond market.

[Freedom'sWorthIt]

Congratulations, Israel, on your 60th (modern) birthday!

Was listening to a retelling of your miraculous survival after Ben Gurion announced that Israel was an established nation - that 5 well armed Arab nations surrounded you and that you had only 10,000 rifles that the defenders of Israel had to share...

Could this be nothing but God’s miraculous deliverance of His Nation, His People, from the surrounding “lions” / enemies???

It happened before I came into the world —— but somehow I have missed the massive press congratulations that should be coming to Israel at this 60th Anniversary date.....

Oh, that’s right, the media along with all the other leftists/socialists/communists in the world LOATHE the establishment of Israel - re-establishment of this nation...primarily because Israel the Nation is one of the greatest testimonies to the TRUTH of God’s Holy Word in all of modern history! In fact, ....Israel is a testimony to the truth and reality of our awesome, almighty, God! Praise His mighty name forever!

[Salem]

Productivity!  

Contrast all of this with the global welfare kleptocracies in Gaza and the West Bank, which HAMAS and the PA struggle to maintain with the same vigor.

---

If you'd like to be on or off this
Christian Supporters of Israel ping list,
please FR mail me ~
    

There failed not ought of any good thing which the LORD had
spoken unto the house of Israel; all came to pass. (Joshua 21:45)
Letter To The President In Support Of Israel ~
'Final Solution,' Phase 2 ~
Warnings ~
The Nature Of Bruce ~

"The West has given more significance to the myth of the genocide of the Jews, even more significant than God, religion, and the prophets...."—Iranian President Mahmoud Ahmadinejad
The Holocaust Chronicle ~



" ... It's time we recognized the nature of the conflict. It's total war and we are all involved. Nobody on our side is exempted because of age, gender, or handicap. The Islamofacists have stolen childhood from the world."—FReeper Retief
"Palestine is the wrong name for their State. It should be called Anarchy."—FReeper sgtbono2002
"Then let's wait and see what the Arabs do after they take Gaza. There's nothing like Arab reality to break up a Jewish fantasy."—FReeper Noachian
A student told his professor he was going to "Palestine" to "fight for freedom, peace and justice,"—Orwellian leftist code words that mean "murder Jews."

[Ernest_at_the_Beach]

What a story...about Fortitude ...etc...

And our trendline is going toward Socialism...and godlessness...

[investigateworld]

that 5 well armed Arab nations surrounded you and that you had only 10,000 rifles that the defenders of Israel had to share...

Occasionally, I see Israeli K-98 Mauser Rifles for sale in Shotgun News. These are the veterans of their War for Liberation, priced reasonably. They were re-barreled in the early Sixties for the NATO 7.62MM vs. the old German 7.92 MM...

Keep meaning to get one to remind me that G-d is still in the Miracle biz.

What stories they could tell if they could talk.

[AlaskaErik]

Let’s see...they got rid of socialism, sold off nationalized companies and lowered taxes. Too bad most of the rest of the world can’t see the true path to prosperity.

[Freedom'sWorthIt]

Yes it is....Amen.....another reason the devil and all his followers hate Israel....

[Freedom'sWorthIt]

Indeed - what stories they could tell.

I would in fact like to find a good retelling of that miraculous story somewhere.....is it in video somewhere?

Again Israel’s modern “rebirth” happened before I came into the world ....but what a story that must have been. Wonder how the press handled those events at that time....favorably? With bias? Ignored the events?

Would like to find out more.

[SJackson]

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

High Volume. Articles on Israel can also be found by clicking on the Topic or Keyword Israel. or WOT [War on Terror]

----------------------------

[Convert from ECUSA]

"The rebirth of Israel is proof that the Word of God is true."

Amen and right on!

[backslacker]

Happy Birthday Israel !!!

[444Flyer]

“The rebirth of Israel is proof that the Word of God is true.”

Absolutely! When you look at Israel and consider all the details that have gone into recreating the nation financially, politically and militarily, you have to know that His fingerprints are all over every detail.

[444Flyer]

“The rebirth of Israel is proof that the Word of God is true.”

Absolutely! When you look at Israel and consider all the details that have gone into recreating the nation financially, politically and militarily, you have to know that His fingerprints are all over every detail.