Demonstrators are organizing to march to Jerusalem to protest against the reform/revolution.
It's not too late to stop the snowball that will hurt the economy (Photo: Uri Sela)
Even against the background of today's strike, if Israel were a stock, investors would still mark V on the sections of financial stability, expected future growth, and the ability to repay the debt, on the other hand, they would be left with question marks regarding the possibilities of sustaining the potential inherent in the investment in view of the ongoing internal debates and intensifying - at least as reflected in the local discourse.
Investors' negativity regarding Israel, contrary to what people think, does not come from threats by parts of high-tech to take money out of the country.
In the eyes of quite a few economists, these are portrayed more as spin than economic truth, since most of the Israeli hi-tech companies did enjoy a high valuation, but not profits.
Therefore, the state still does not receive taxes from most of them, and until the long-awaited exit, which may bring billions into the state coffers in the future - there will still be several elections here.
It should be understood that Israel, as a country and as a society, not only does not receive huge funds from the high-tech industry, but also gives - and a lot: from grants (the Innovation Authority), through loans (banks), to investments (Israeli and institutional angels).
The sense of spin is strengthened when you find that the main market for most high-tech companies is found in the US and Europe, and that's where most of the company's employees are located - and not just Israelis. The latter are abroad as a result of "relocation", which did not start with the legal reform/revolution, and has been going on for years as a result of the companies' need to touch the target markets.
Real estate in the central area (Petah Tikva). Hi-tech has a great influence on real estate for both offices and residences.
The sales offices are already feeling the negative sentiment (Photo: Reuven Castro)
snow Ball
But we should not underestimate the snowball that some of the hi-techites have started to roll in our direction, since many traditional industries are fed by them, such as office real estate, restaurants, training, security and cleaning services, leasing, and more. And this alongside the industries that benefit from the relatively high wages of industrial workers, such as real estate" n for residence, tourism and others.
A decline in recent cycles will harm Israel's GDP (gross domestic product) and further widen the existing economic disparities in Israeli society. A decline in growth will also signal to investors that Israel is headed in the wrong economic direction, and will further increase the rolling snowball. The fear is that the billions of dollars that have been poured
in Israel will return to the country of origin and this will harm the banks' abilities to grant credit to the various companies in the economy, which will further reduce Israel's growth capabilities.
If that's not enough, the threat of the brain drain, which has been talked about since the 90s and Israel has been fighting and has been fighting it ever since, may make a comeback and even drop some in the age scale while it permeates the youth (some of them from the Israel Defense Forces, on the way to the most elite informant units) who have entered the public discourse This
will significantly harm Israel's economic future, not only because of the draining of the billions that are invested in education today.
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Hightkist protest in Tel Aviv.
The withdrawal of high-tech money from Israel is negligible.
The atmosphere that accompanies it, could lead to severe damage to the economy (Photo: Yanon Yatach)
negative emotion
The negative sentiment that pushes the price of the "share" of the State of Israel down, therefore, stems mainly from the ever-widening fissures in Israeli society, rather than from the hidden concerns of spending such and such funds (which have always gone out, returned, and will continue in this cycle according to economic viability).
The real fear for finances is the social instability, which could lead to an economic retreat and get Israel out of its growth potential figures.
This is also where the prophecy of rage to lower the country's credit rating was born.
The rise back to the point from which Israel will decline will be difficult, but it will be more difficult to try and restore the growth potential it currently enjoys and adding growth inhibitors such as downgrading the credit rating, may only prolong the journey.
This will cost all of us, and especially our children, the quality of life: all the economic processes that have started in recent years will also be withdrawn, among them, for example, the announcement of the fight against the large bodies that control the economy and are defined by the inclusive name "monopolies".
Supreme Court.
Those who want to protect him cannot "burn the club", i.e. - the economy (Photo: Flash 90, Nati Shochat)
The economy is not part of the debate, but the basis that makes it possible
So what should be done?
First of all, take the economy out of the conflicting discourse.
One or another sentiment towards the legal reform/revolution should not be cast on the Israeli economy.
The difficulty of uniting around the clan campfire with the election of a new leader (or an old one, even it is problematic), should not lead the winners to change the rules of the game, certainly not to cause the losers to "burn down the club".
It's not too late: the snowball has indeed started to roll, but it has not yet grown to the extent that it will eliminate every good economic plot that happens in its path.
In the days when every small principle becomes a lofty ideal, it may be a bit unpopular to put money above what is apparently perceived as "values", but economic well-being is definitely an important value in a reformed country and therefore, for the sake of our children, we must agree: the economy is not part of the debate, but the enabling basis the privilege of holding it.
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