Against the background of the publication of the plan to lower the cost of living, economists disagree about its effectiveness and how much it will affect the pocket of the Israeli consumer.
A professor of economics and president of the Taub Center, Avi Weiss, says in an interview with Israel Today that "it is clear that part of what is happening today is putting out fires, the media and social media are putting a lot of pressure. It is stressing politicians and giving its signals."
Weiss sees the need to expand imports to Israel by removing tariffs.
"The great cost of living in Israel stems from the lack of competition. The same steps that the government has now taken - to open the markets to simpler import options, with fewer tariffs, with fewer quotas abroad - are the real solution to the cost of living."
However, when it comes to subsidizing the electricity tariff, Weiss is skeptical.
"If you want to help the weaker sections, you have to help them through Social Security, through direct subsidies to people, and not through lowering services like electricity, because it also helps people who live in luxury homes and consume much poorer electricity."
In contrast, Prof. Avi Simhon, who served as chairman of the National Economic Council and former Prime Minister Netanyahu's economic adviser and a member of the Trachtenkenberg Committee to Lower the Cost of Living, thinks lowering the electricity tariff is one of the important steps.
"Why are electricity and fuel prices so important? Because their rise in price causes other things to rise. There is a way here to reach a 'package deal' in which the government says 'I give up tax - you lower the prices'."
Prof. Simhon also talks about the need to raise the minimum wage beyond the plan recently presented by the Minister of Finance and the public sector, which Simhon defines as "funny."
"Since they raised the minimum wage four years ago, there has been inflation of 7% -8%, which means that the minimum wage has eroded greatly, because the ridiculous plan to raise the minimum wage by NIS 100 a year is too far to compensate for the rise in prices."
Like Weiss, Simhon agrees that lowering tariffs and expanding competition in Israel is a must, and beyond the need to lower electricity prices and raise the minimum wage, recommends that the government toughen positions with the largest food companies in the economy - manufacturers and importers.
"The government needs to make it clear to food importers that it will not be willing to tolerate any increase neither now nor on Passover."
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