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This is what the perpetual election has done to the economy - hopefully it's over

When there are Fatah elections, government ministers tend to please the public - sometimes at the expense of what is good for the country's economy.

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• Israel Katz

• Miri Regev

• Avigdor Lieberman

Avichai Snir

Friday, June 18, 2021, 1:30 p.m.

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In the video: Finance Minister Lieberman clarifies that there will be no tax increase and compliments MK Avidar (Photo: Knesset Channel)

There is a story about the Likud's first finance minister, Simcha Erlich, who tried to pass a slightly restrained budget.

Begin approached him and said, "Rabbi Ehrlich, Zevulun Hamer told me that if he had such a budget, he would not be able to save the students of Israel. Maybe you could do something?"

Minister Ehrlich could not say no to Begin, and within a year of the Likud election, inflation rose from 40% per year to 70%, within two years to 100%, and within 6 years to 450%.

All because Minister Ehrlich could not say no to Begin, and Begin could not say no to anyone who asked for an addition.

Minister Ehrlich is not alone.

When the government is afraid of elections, the economy usually does not function well, and the last few years are no different.

As soon as the Likud felt that its rule was being undermined, the politicians began to play the "let's want them all" game.

We all pay the price, and we will continue to pay in the future.

Here are some examples.

More on Walla!

Lieberman can relax: the economy is not in a situation that requires a stabilization plan

To the full article

Continued the Knesset. Former Finance Minister Israel Katz (Photo: Reuven Castro)

The Minister of Finance, Israel Katz, decided to continue the Knesset payments to everyone, even when the corona was already in decline and the number of vacancies began to rise.

The result is that right now there are also a lot of vacancies, and also a lot of people who are not working.

Seemingly, it does not look so terrible, because what's wrong with people sitting at home a little longer and enjoying the state's money?

It is true that we will have to pay for it in the future, but since the deficit has already increased to 70 and something percent of GDP anyway, what does it matter if the deficit at the end of the year is 75% of GDP or 76%?

The problem is elsewhere.

When employers look for workers and do not find, they have no choice but to raise wages.

This may be good for employees, but since businesses are not in good shape after the Corona, it increases the chances of businesses going bankrupt.

Besides, if wages go up, prices go up too.

So if you pay more at the supermarket or when you go on vacation, you will know that part of the increase is because of the finance minister and his desire to keep the unemployed happy.

Regev did not open the traffic jam at the port

Transport Minister Miri Regev was also very important in maintaining good relations with potential voters. So when she heard that dozens of ships were waiting outside the port of Ashdod and could not enter because a large part of the workers were on leave and the Histadrut was not interested in allowing the employment of temporary workers, she decided to do nothing. Why upset their port and committee workers? So the ships stay out of port, and the one who pays the price is the importers (and consumers). A week ago I met a manager of a factory that supplies raw materials to the construction market. The traffic jam at the ports has already raised the price it charges the contractors by NIS 200 per ton, and this is just the beginning, because its suppliers are no longer willing to send ships to Israel. So if you ask what are the reasons for the rise in apartment prices (and many other things), one of the answers is that Miri Regev was not suited to upset some people in the workers' committee of the Port of Ashdod.

One could have been optimistic, now that there is a new government.

But even this government does not look very stable, and even the ministers who are now in office know that it may very well not take long until the next election.

I really hope they still will not try to please everyone all the time.

In the meantime, at least the finance minister is constantly announcing that he does not intend to do so.

But at the same time he also declares that tax increases and cuts are really not part of the plan.

So it will be interesting to see how he also does not raise taxes, nor does he cut back, and also produces priorities that are for the benefit of the public, and not for the benefit of those who know how to press.

Dr. Avichai Snir - Netanya Academic College and Bar-Ilan University

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