No wonder Labor can't win an election anymore
Someone had better explain to new Labor party leader Shelly Yachimovich that most Israelis don't want to see import duties to protect our domestic monopolists anymore. Labor Party leader Shelly Yechimovich criticized on Thursday the government’s decision to approve the lowering of import duties.I wonder what duties they lowered. Cars would be nice but that's probably asking too much.
“The true face of the Netanyahu government was exposed,” Yechimovich said. “A surge of imports of industrial and agricultural products will be severely harmed and tens of thousands will find themselves without employment.”
Earlier on Thursday, Industry and Trade Minister Shalom Simhon said that an agreement had been reached with the Ministry of Finance regarding the lowering of import duties while at the same time increasing the chief scientist’s budget.
Labels: Shelly Yacimovich, tariffs
posted by Carl in Jerusalem @ 5:24 AM
2 Comments:
Unfortunately, she is technically correct. If the local monopolies fail to adapt, becoming more efficient, lowering prices (and profit margin), and competing better, then indeed many locals may lose their jobs. And given Israel is a tiny economy, that could be a significant impact.
The fact that the monopolies have taken advantage of the situation to gouge the consumers to the point of not be able to afford to live is, in some ways, besides the point.
That assumes there is local competition. When imports are heavily taxed and there is no local competition, then it's just a hidden tax.
Eliminating the host of taxes levied on everything in Israel and replacing it with one flat tax would increase government revenue and lower the cost of living. It would also create more jobs and stimulate more competition in the market.
The odds are slim to none the Israeli government will enact real economic reform any time soon.
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