Business
Poverty report shows rise in gaps before economic crisis
Yael Branovksy
Published: 25.01.09, 09:43
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6 Talkbacks for this article
1. Israelis under the povert line: Thank you Bibi!
David ,   Karmiel, Israel   (01.25.09)
The blame for this is the result of the the reductions in the allowances to to the elderly, the sick and the disabled by our Great Leader, MK Benjamin Netanyahu! If the Likud wins the election on Feb 10 the Government will have to invest a great deal of money for the building of new cemeteries. The old age allowance by the State is NIS1268 per month and for a couple it is NIS 1906 per month! This is for 2 people! I would like to see if Mr. Netanyahu could survive on that! The Lord giveth, Netanyahu taketh away! That is what he did when he was Minister of Finance. Just think what he could do if he was Prime Minister!
2. Even the ones working are living on the poverty line!
Jjjay3 ,   Israel   (01.25.09)
A basic wage of 4000 shekel for working a full month doesnt even cover the basic living expenses thats required to survive. The next government needs to adress this immediately as the cost of living has been raised significantly ove the last 8 years, while basic wages have remained pretty mush the same! Its no wonder why the poverty rate increases.
3. David from Karmiel..Get a grip
Al   (01.25.09)
Stop the bellyaching and toughen up. Unless of course you make a living from crying the blues. The State is piss ass poor..Its a friggin miracle there is food in Israel. Israel has nothing to sell the world save for some hyped up BS technologie and some munitions. Its thanks to Jews around the world that you even have a blade of grass growing there. Most Israeli Jews have graduate degrees in bellyaching schnorrerut and whinning. Be thankful for what you have namely your life and learn to suck it up. Its called tough love and I know you'll pull through otherwise you can blow your brains out and we'll sing a kaddish.
4. Poverty in Israel
Millicent ,   Israel   (01.25.09)
Poverty is on the rise here,due to layoffs caused by the economic situation, and also due the fact that minimum wage is not a livable wage,and it has not been increased to allow workers to have anything more than the basics of life. Just open your eyes and see the poverty around you, in cities like Haifa,Tel Aviv and even Jeri\usalem you see people dumpster diving and digging through trash for food and for cans to return to the store for food. See the increased numbers of people sleeping on the streets,going into soup kitchens, and even begging for change at intersections. It is not just Arab women and children begging anymore but Jewish Men, Women and children as well! This is the Shame of this country, Israel is supposed to be a light unto nations but yet it allows citizens to go hungry and night sleep in the streets, we as a nation must say no more of this business as usual. The Gov. must ensure that all citizens have a warm bed to sleep in and food to eat! Job training and jobs that pay more than a meager living!
5. Al
Eldar ,   Haifa   (01.25.09)
Al. You symbolize why talkbacks are such a bad idea. Let someone hide behind anonymity so he can dispose of all civility, nuance and intellect. Aside from the fact that you obviously pay no attention to what types of technological advances in numerous fields are coming out of Israel. I'd look to Warren Buffet before anonymous Al for economic analysis.
6. A,B,C, of Economics...
Abdel Karim Salim ,   Jerusalem - ISRAEL   (01.25.09)
Modern economic theory was first written down by the Scottish " Adam Smith " in his book " The Wealth of Nations " which was published in 1776 (the year Americans revolted against Brirtish rule & declared their independence).In his book Adam Smith advocated market economy based on the principle of "Laissez Faire" that is to say " non-government intervention" ... Smith naively believed that Capitalism, as an economic system, wes blessed with a built-in "self-correcting mechanism " , & that it can correct its flaws and balance itself spontaneously by means of supply & demand in the market. Ironically during the administation of the Republican President Herbert Hoover the US businesses and owners of vast farmlands were unable pay back the huge debts they had borrowed from banks because of losses they suffered without anticipating them.Thus the banks in the USA found themselves without liquidity & ultimately went bankrupt.That led to a chain reaction which caused the crash of the stockmarket in Wallstreet,New York City,& the bankruptcy of businesses of several sectors of the US economy,notably industry, & agriculture,which,consequently,laid off hundreds of thousands of blue collar & white collar workers who, in their turn, suddenly found themselves unemployed & without regular monthly salaries or wages.Hence the entire US population started feeling the pinch of the Great Depression of 1929-1933 which proved contagious and eventually infected European economies which started suffering from recession, high unemployment and hyper inflation.In such circumstances even huge bundles of paper currency did not suffice to purchase even a good as tiny and cheap as a small box of matches.Paper money became quite worthless. As a result of high unemployment,hyper inflation, and recession Herbert Hoover lost in the election & was replaced by the Democrat Franklin Roosevelt in the USA while in Germany the Great Depression was one of the main reasons why Adolf Hitler rose to power & became chancellor of Germany in 1933. Surprisingly & miraculously the Great Depression coincided with the emergence of the most brilliant economist of the 20th century,the english John Maynard Keynes, who came up with the idea of direct government intervention in national economic affairs,in his book " The General Theory", by two means : 1) Government taxation. 2)Government spending. Keynes ( his recovery ideas where termed " Keynsian economics ") urged governments to be constantly responsible for keeping the national economy prosperous by spending money (public sector) much more than collecting money (in the form of taxes), thereby bearing a "deficit budget " in order to stimulate the economy in times of recession. And to the opposite,Keynes proposed that governments should collect much money from the people ( private sector) by way of various taxes in times of inflation,thus ultimately winding up with a surplus budget. In Capitalism, the painful dilemma is termed "Philips Curve" which is the tradeoff between unemployment & inflation. That is to say capitalism should be plagued either by inflation, or unemployment. When bearing a deficit budget the government usually covers the deficit by resorting to one of those methods: 1)borrowing from the people (private sector) by selling them guaranteed,long-term bonds. 2)borrowing from private banks. 3) borrowing from the Central Bank ( lender of last resort). 4)printing paper money continuously.But this is the worst & most unrecommended method because the abundance of liquidity (cash money) starts chasing the too few goods in the market &,consequently,causes high inflation in a relatively-short period of time...
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