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The day when the Minister of Economy threatened the retailers - voila! Of money


Nir Barkat's warning to economists that they should beware of raising prices also shows how qualified he is to be Minister of the Economy, but no less than that the transformation has been completed

In the video: MK Nir Barkat in an interview with his Tel Vicky Adamker at the Walla studio! (Still photo: Reuven Castro)

Israel is headed for an economic catastrophe.

Maybe not actual bankruptcy, since if there's one thing this government can't say, it's that it inherited a deficit from its predecessor.

So the many billions saved during Avigdor Lieberman's short tenure at the Ministry of Finance will be used by the government to finance the coalition agreements.

Niha - this can still be financed from the state coffers and even justified: they all knew that Netanyahu and the ultra-Orthodox (for example) are one.

What the government does not have funding sources for is the great economic crisis ahead.

Economists warned the government against a further devaluation of the shekel (or a jump in the dollar exchange rate, you choose which half-empty glass to see) which would inevitably lead to an increase in prices, but the government did not fall off the chair (yet).

What is she going to do?

The direction was indicated by the Minister of Economy, Nir Barkat, who literally threatened the retailers if they did not dare to raise prices.

The real customers of Rami Levy

We will return to the actual threat shortly, but first a few words about the interests of retailers.

Rami Levy, Shufersal, Yohannoff, Beitan Wines, Victory and others, have an interest in their buying cycle being as large as possible.

Their profit percentages are a derivative of turnover.

In the days of an economic slowdown that reaches our shopping cart, they, who are responsible for satisfying our most basic food, are also affected.

Milk and eggs may be bought even in times of recession, but you save on the small choppers next to the cash register, on electrical appliances that are sold today in all the chains and on other "semi-luxury" products on which the profit is much higher than on the yellow cheese (even the one that is not regulated).

Choose to warn the wrong people.

Barkat (Photo: Reuven Castro)

It's not that they don't always have an interest in raising prices, but they have a reason to do so especially in times of abundance, as was the case in the last two years: the financial situation of the citizens of Israel was (and still is) good - so we filled the carts with all good things, even when we complained at the checkout about how expensive everything was More expensive here.

Retailers, beware of the Minister of Economy

Itzik Abarkhan (Chairman of Shufersal) and Rami Levy do not have a party. What they have are shareholders who want to see an increase in revenues and the line of net profit. It is hard to suspect them (certainly not because he received from Netanyahu, even if indirectly, the honor of raising a torch on the eve of Independence Day ) that they will raise prices on purpose in order to thwart the reform... Whatever they do or not, is designed to advance their interests.

Let's say the Minister of Economy warns the importers (you won't hear too many good words from me about them, but if part of their discourse is about the increase in the price of raw materials and costs The transportation is intended to feed a larger price increase than is justified, because in the case of an exchange rate that is becoming worse for them every day, a completely justified price increase is only a matter of time) or the manufacturers (as above, they may produce in Israel, but some of their raw materials come from abroad and therefore exposed to devaluation of the shekel exchange rate), as his predecessors did.

Who did Barkat choose to warn? The retailers, which is a bit like warning consumers lest they dare to buy at high prices.

There is no party, there are shareholders.

Rami Levy (Photo: Flash 90, Yonatan Zindel)

So Barakat will not bring salvation to the Israeli who will soon find it difficult to meet all his financial obligations, but what we did receive from him is a frightening lesson in the direction in which the government is moving: a big increase in prices is coming?

Let's threaten the retailers!

Is the situation bad?

Let's threaten the media so they report a little more positively.

Bolshevik right-wing government

If anyone was in doubt as to where the legal reform (of which the opponents of the revolution, in its current form, are also supported in a very large part of its sections!) is taking the State of Israel, then we are getting a lesson: a full-on right-wing government is the one that is trying to impose Bolshevik methods here: we will scare the merchants from coming up Prices and then threaten the media to moderate the scope of the protest or, for example, to stop documenting violent police officers.

I have a wonderful idea for the Minister of Economy and the Rothman-Levin government of which he is a member: let's ban the media from publishing the dollar exchange rate or the inflation rates - and that's how we'll save the economy!

  • Of money

  • opinions


  • Nir Barkat

Source: walla

All business articles on 2023-03-06

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