Observations

I have to admit that living out of the country and being my own worst critic, I find it somewhat unfair to write criticism about Israel.  In addition, I always felt that dirty laundry should be washed and presented at home, rather than the web.  But in contrast, from recent demonstrations revolutions, and protests around the world, I have learned that one should voice his or her opinions is whatever way they can.  Whether demonstrating, writing, walking down the street with large signs.  Being where I am, Beijing China, I can neither show up to a demonstration or carry a large sign.  I can however, write.  So I will wash some laundry here.

Israel is a Western country.  It is a democracy, it is a developed country (official GDP per capita almost $30K, 46^th in the world), with a strong growth rate (4.6% in 2010).  For more you can look up in the CIA Fact Book (https://www.cia.gov/library/publications/the-world-factbook/geos/is.html), in my mind the most reliable data source.  But not all is well in the Israeli economy, and the recent uprising is not completely unexpected.

In many countries where uprising took place recently, the reasons were different.  People of all classes, but mainly the lower class took it to the street because they wanted a part in the decision making process of their countries.  The feeling that they have no vote in what will be done with their tax money is intolerable.  But Israel is a democratic country, with elections every four years or so.  But is it?  Many, myself included, feel that the democratic process in Israel has been broken for many years.  Let me explain.

Israel’s democracy is built on a party system.  Political parties provide a philosophy, a direction, a promise.  The people who like it vote for the party, the people who don’t vote for another.  When the election is concluded, the votes are counted, and divided into the 120 seats of the Knesset (the Israeli parliament).  Each party gets seats relative to their vote count.  There’s an entry bar, below which the parties who haven’t won enough votes, don’t go in.  These votes are then split between the parties who did surpass the entry bar relative to the vote counts it has won.  So far so good.  Correct?  Categorically and unequivocally no.  It’s broken.  Here’s why.  In order to form a government, the leader of the party who won the most seats in the Knesset becomes a candidate premier (Prime Minister) and needs to form a coalition.  One could claim that if the leading party would have won sixty seats (slightly less or slightly more is similarly reasonable) it would work just fine.  As other parties would want to take part in the coalition, the price of including a party in the coalition is relatively low.  But in the last few decades, the leading party takes roughly thirty seats on average.  Which means that it has to buy other parties into the coalition.  Buying in the sense of paying for programs the parties wants funded for their voters.

What happens as a result is a coalition that’s formed from a large number of political parties, some not even close in their ideology, but all united in getting as much as they can out of the relationship.  The government is usually heavy (thirty ministers, some with no office or responsibility is not uncommon), with ridiculous spending patterns, and an ideology that is simply stated – undefined.

Take for example the current coalition.

Likud (right wing) 27 seats

Israel Our Home (extreme right wing) 15 seats

Labor (left wing) 13

Shas (ultra-orthodox, mainly Jews of North African descent) 11

The Jewish Home (ultra-orthodox, mainly Jews of Eastern European descent)

The government has a ridiculous number of ministers (30, PM included), and its philosophy and direction is, well, isn’t.

Basically, everyone wants to satisfy their voters.  In this system, there are two ways to satisfy the party and the voters.  Jobs and programs.  Let’s take two examples.  In order to satisfy “Israel Our Home”, the government has to be settler friendly.  In other words the government has to build or expand settlements, although everyone knows the results are similar to placing a red sheet in front of a raging bull, with no intent of taking cover when the bull arrives.  In order to satisfy Shas, the government must be ultra-orthodox friendly.  In other words make sure that the “Independent” Education System (to which the ultra-orthodox send the children) is exempt of teaching anything which will give their children a shred of a chance to be included in the workforce in the future, that eighteen year old ultra-orthodox young men continue to be exempt of military service, and that those who choose to never work in their life, while bringing many children to the world, get a monthly stipend with which they can somehow survive.

These are just two examples,, but they are very costly.  Another costly aspect of the Israeli election and ruling system is that the Israeli people have become more and more right wing.  As a result, peace with the Palestinians and other countries in the region is slipping away faster and faster, which is in turn taking a heavy toll on security costs.

It’s easy to see that not a lot is left for other programs like helping young couples to survive, higher education (the Israeli education system is deteriorating over the years), the health system (basically falling apart), tax relief (Israel is possibly the most taxed worldwide), and other social programs.  The results are overwhelmingly disturbing.  Couples with higher education, will and drive to work, with reasonably paying jobs, cannot pay for rent, they can’t dream of buying a house, they find it hard to pay for childcare, commute.  As it turns out, it becomes harder and harder to survive.

And here’s the most amazing twist.  Israelis make a living in NIS – New Israeli Shekel.  A reasonably strong currency ($1.0 = roughly NIS 3.4).  The taxes are high, and there’s little help on mortgage.  Israeli pay an arm and a leg for food, gasoline, housing, transportation.  Consumer goods are so heavily taxed, that a family car, say Mazda 3, costs close to twice than the same car costs in China or in the US.  Gasoline costs are double than China, and triple the US.  Then there are Jews who live outside Israel.  Given what the European Jews went through in the middle of the 20^th century- the Holocaust, many think it’s not a bad idea to have a home away from home.  They invest in Israeli real estate.  Simply put, they take money (in Euro mostly) which they have earned in European countries, where the tax is much lower, where many services free or low cost – like education (from toddlers to doctors), health, housing, and they use this money to buy houses in Israel.  They present an unfair competition to Israeli young couples who are heavily taxed, and have to pay lots for basics: food, childcare, education, transportation.  This alone drives the real estate prices up so much, that many find themselves in a place where they cannot afford wither to rent and most certainly to buy a home.

In addition, the government, welcoming this external investment, grants these people with some benefits that are not given to Israelis.

So between special populations taken care of their coalition sponsors, and foreign citizens with money earned in different currency and less taxed, the local Israelis have lost this competition.  A miserable loss to them, a disastrous loss for Israel.  Most recently, tens of thousands took it to the streets to demonstrate and protest.

And I haven’t mentioned the doctors who are on strike for over three months.  Interns in the medical profession in the country simply cannot make a living.  To stay afloat they must work shifts that will make each and every one of us cringe.  And the teachers, and many other working people are just saying: we want to work, pay taxes, and do our military service.  But we also want to make a decent living.  President John F. Kennedy once said: “Ask not what your country can do for you – ask what you can do for your country”.  In general, I agree.  But the country is not altogether exempt of worrying about the well being of its citizens.

What’s interesting is that what used to be the territory of the lower class – low income, low education – is now mainstream and middle class.  People with education and drive find it impossible to lead a life in Israel.

I must admit.  What made me write this post is a single sentence in today’s www.ynet.co.il.  It said clearly that the country must be rejoicing that this protest finally was taken to the streets.  Simply stated, the article said, this is the last step before scores of Israeli take their children, their belongings, and go elsewhere, as many already did.  This isn’t just a threat.  Some of you probably know many Israelis around the world.  Many Israelis are highly educated, creative and resourceful.  Many are welcome in other countries.  Many don’t leave only because of ideology.  Zionism, or call it whatever you like.  But when it comes to feeding your children, ladies and gentlemen, Zionism gets to ride in the back.