Shawarma for 60 shekels, upside-down coffee for 17 shekels, pasta for children for 60 shekels. These exorbitant prices are slowly becoming the new reality for Israelis. A meal for two in a good restaurant already costs no less than 600 shekels, the cart at the supermarket has become hundreds of shekels more expensive, and the salary – shall we put it gently – in most cases cannot catch up.
Add to that the surge in monthly mortgage repayments, and you have a perfect recipe for the sense of economic suffocation felt by the middle class and the weaker segments of the population. It is no wonder that in most surveys conducted in recent years, including by Israel Hayom, one clear conclusion emerges – the cost of living is the most troubling issue for the Israeli public today.
The basket in the supermarket is getting more expensive, and the salary is unable to keep up with the increase in prices (illustration), photo: Oren Ben Hakon
What bothers most most of the public, and especially young people, is not even the difficulty of buying a home (it has long since become a luxury), but the most basic thing - soaring food prices. In recent weeks, the largest companies in the economy have announced an increase in the prices of their products, and if that is not enough, even the most basic product, bread, is becoming more expensive, and even Ben & Jerry's is raising the prices of ice cream ahead of the summer.
Unlike previous years, the public, which is exhausted by the weekly demonstrations against the legal reform, as well as those in favor of it, chooses to suffer quietly and increase the overdraft at the bank. Even the Histadrut, which has so far taken an active part in the struggle against the wave of price increases, chooses not to comment this time.
The previous government, it should be recalled, waged a stubborn war against food suppliers who raise prices, but succeeded only partially, because in most cases the companies only suspended the price increases by a few months. And it is clear that the letters to food companies will not succeed in lowering prices – a serious work plan is needed here, with reforms to lower the cost of living in every area. Unfortunately, there are not many of them in the state budget that will be put to a vote by the Knesset this week.
In the meantime, the government is reacting late, and only yesterday embarked on a move whose effectiveness is questionable. Economy Minister Nir Barkat demanded that the food giants disclose their financial reports, "in order to prevent the oppression of the public and the monopolistic conduct of the largest importers and manufacturers in the economy."
Economic right? Especially when it's convenient
When Finance Ministry officials are asked why they allowed the supervised increase in milk prices, which in fact sparked the current wave of price increases, the answer will usually be received: "Subsidizing products contradicts our economic outlook." On the face of it - sounds logical. After all, the finance minister advocates the free market approach of the economic right.
Cabinet meeting at the Prime Minister's Office in Jerusalem. Economic Right - When It's Convenient, Photo: Photo by Paul Jonathan Zindel/Flash90
But this approach does not sit well with the distribution of food stamps worth a billion shekels, with increasing subsidies for ultra-Orthodox educational institutions that do not teach core curriculum, and with increasing allowances for Avrahim – all of which, of course, are far from the perception of the economic right. And what about providing direct support to farmers to lower the price of raw milk? Or free, but really free, education up to age 3? A budget has not yet been found for all of these.
The current government may want to do more for the public, but the situation in the economy is not bright with the decline in tax revenues, and we must not forget the promise of billions to the ultra-Orthodox sector. Any government and its priorities, you will say. It's all true. Just remember that lowering the prices of electricity and milk would have helped everyone, and increasing the budget for only one sector contributes only to it.
Wrong? We'll fix it! If you find a mistake in the article, please share with us