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That way nothing will move: the government has forgotten a fundamental economic concept

Why should someone who gets almost the same pay for sitting at home go out to work?

Will Bnei Brak wait for Roni Gamzo to approve to meet with each other across the road?

Avichai Snir reminds the government of the simple concept: incentives

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• Roni Gamzo

• Benjamin Netanyahu

Avichai Snir

Friday, 04 September 2020, 01:38

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In the video: Home Front Command information video on the traffic light plan (Home Front Command)

There is a very fundamental concept in economics called incentives.

Economists believe that people tend to do things if they are given positive incentives and refrain from doing things if they are given negative incentives.

I know psychologists argue that this is not always the case, and sometimes, psychologists are right.

But usually, incentives work.

I mention this pretty obvious fact because it turns out that the government probably forgot about it.

And not only did they forget.

He also does not study.

I do not know exactly when it started, but here is one example.

When the Corona crisis began, and hundreds of thousands were laid off or deported, the government announced that anyone who lost their job during the Corona period would continue to receive unemployment benefits until mid-2021. The truth is that it is not such a bad move: it is certainly a much better move than distributing to people 750 But suddenly the finance minister starts complaining that even when the economy starts to recover, the unemployed are in no hurry to return to work. So I have news for the finance minister: for people who worked low wages, and these are most corona unemployed, the gap between wages and unemployment is not all- So when people have the option of staying home, or traveling to work by bus, what are they supposed to choose, especially if we are in the Corona era and every day let people know how dangerous it is to be outside?

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If only we were playing Sim City

Who goes for a test, takes the risk that he is God forbid he turns out positive, and then he will have to spend another period in isolation, which will cost him either on sick days (if he has any), or just another period without a livelihood

Another example is the claims of the Ministry of Health that it does not have good monitoring of the spread of the virus because people who are in isolation do not want to come for corona tests.

But obviously people do not want to be tested.

If someone is in isolation and feels good, he knows he has two options.

One option is to stay indoors until the end of the isolation period.

The second option is to go do a test.

But whoever goes for a test, takes the risk that he is God forbid came out positive, and then he will have to spend another period in isolation, whatever it will cost him or on sick days (if he has any), or just another period without a livelihood.

I know what people I know preferred.

This problem could have been easily solved if those in isolation were given unemployment benefits.

In fact, in that case, I'm pretty sure people would have volunteered to go into isolation and go for tests.

But because government ministries have forgotten the concept of incentives, they have not yet thought about it.

Our government could have been forgiven if all these things had belonged to history.

But even those who invented the traffic light program have not yet learned that people respond to incentives.

Someone explain to me what the logic is in a plan that says a red city is not allowed to converge, but a green city is allowed.

So let's say they declare Bnei Brak a red city.

What do you think a group of Bnei Brak residents who want to meet will do?

Will they wait until Bnei Brak turns green, or will they cross the road and meet in the green city of Ramat Gan?

If I have to guess, I guess they will not wait until Bnei Brak turns green.

In short, as a good friend, Dr. Ronen Bar-El, told me, the traffic light program could, perhaps, work in the state of Sim City. In the State of Israel, the result will be that instead of the virus spreading in certain areas, it will spread evenly throughout the population. Better. We are always in favor of equality.

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