Ehud Olmert has mostly been the champion of the Israeli oligarchy, helping to preserve their monopolistic privileges.
One must suspect, therefore, that his cry for higher expenditures for “the weak” is simply another ruse to get more funds so that they could be dispensed to cronies under the guise of promoting social welfare.
Politics and personal ambition, and yes, greed, always seem to trump the national interest.
Filed under:
reform
If Israel suffered two decades of debilitating non-growth, if most Israeli workers earn a pitiful $1,200 a month, if thousands of workers are jobless, and many families cannot make ends meet, a large measure of the blame belongs to the banks. Namely, the Hapoalim-Leumi duopoly and the small coterie of failing bankers that has taken control of them, and of our lives. They’ve wasted our hard-earned savings on reckless loans to cronies (70% of all loans given to 1% of lenders) and created a credit crunch that’s ruined tens of thousands of businesses and stagnated the Negev and Galilee.
Unlike most of our leaders, who are economically illiterate, Netanyahu understands how vital bank reform is. He also has the political courage to challenge the powerful banks in the media, academia, law, and in the “business community” which thrives on monopolies.
If Netanyahu succeeds in finally implementing the reform that the banks have managed to fend off for 20 years, it will immeasurably increase his chances of becoming prime minister again. This is perhaps why so many obstructionists – from the oligarchy’s Hate Bibi Club to the media and the political establishment – are trying to undermine the reform that is virtually a matter of life and death for Israel.
Chief among the obstructionists is Netanyahu’s political rival Ehud Olmert.
Politics and personal ambition, and yes, greed, always seem to trump the national interest.
Olmert must think that Prime Minister Ariel Sharon’s days are numbered, so he opened a succession war. Otherwise why would he reveal his hand so crudely by launching just now – when Sharon needs “industrial peace” within the Likud – a campaign against Netanyahu that will make Sharon’s coalition building efforts more difficult?
Why would Olmert risk damaging an economic reform in which Sharon himself is heavily invested? Moreover, why do it when it is about to succeed and when it is the only significant achievement of the Sharon government?
Why would the calculating Olmert demand an increase in the deficit and budget (which he himself charges contains millions of dollars in hidden surpluses) when he knows the catastrophic consequences this could have? And why would he recklessly dismiss the solemn obligation undertaken by the government to cut the deficit and the budget to reform the economy (including financial markets) as a condition for receiving US government loan guarantees?
Is it proper for a vice-premier to treat with such contempt Israel’s obligation to our sole friend and protector, thereby jeopardizing America’s invaluable support?
A COMPARISON between Olmert’s Hebrew interview in Yediot and his English contribution in the Post is revealing.
In the Post, Olmert’s dismissal of Israel’s obligation to the US is not even mentioned. You will also not find in the Post the offensive (to Olmert’s American supporters) charge that “Netanyahu transplants to Israel the extremist worldview of former British prime minister Thatcher. In a rigid and dogmatic way Bibi exhibits a curious admiration for the Thatcher model of unbridled, extremist market economy that does not fit our torn inflamed society. To apply here such a model is to pour oil on a conflagration threatening Israeli society.”
Olmert’s alternative is to propose a massive increase in government intervention in the economy. The arsonist is shouting “Fire!”
Olmert must know what a wide gap separates the government’s “good intentions” to promote industry, create jobs, improve education, and lower the income gap, and their actual catastrophic outcomes.
If he did not learn it from 60 years of Israeli experience, he could have learned from his own failures: As minister of health, he failed to institute a reform of Israel’s costly, distorted, and bankrupt health system. He failed to incorporate as separate entities loss-making government hospitals. As mayor of Jerusalem, he failed to reform the extremely bloated and corrupt municipal apparatus that consumes terribly high taxes; nor did he do anything to lessen the stranglehold of land speculators whose monopoly the government helps maintain by releasing only small tracts of land (usually to those same speculators), making housing costs so prohibitive.
He ignored the flight of Jerusalem’s young, the city’s economic decline, and did little except ask for more government hand-outs.
Olmert has mostly been the champion of the Israeli oligarchy, helping to preserve their monopolistic privileges. One must suspect, therefore, that his cry for higher expenditures for “the weak” is simply another ruse to get more funds so that they could be dispensed to cronies under the guise of promoting social welfare. It seems to matter little that the cost is undermining the kind of reform that can deliver us from our economic misery.
Sharon, take heed: You think you know your enemies. Beware your friends.
Log in or Register
Ehud Olmert the obstructionist
The Jerusalem Post
11 Aug ’04
Ehud Olmert has mostly been the champion of the Israeli oligarchy, helping to preserve their monopolistic privileges.
One must suspect, therefore, that his cry for higher expenditures for “the weak” is simply another ruse to get more funds so that they could be dispensed to cronies under the guise of promoting social welfare.
Politics and personal ambition, and yes, greed, always seem to trump the national interest.
Filed under:
reform
If Israel suffered two decades of debilitating non-growth, if most Israeli workers earn a pitiful $1,200 a month, if thousands of workers are jobless, and many families cannot make ends meet, a large measure of the blame belongs to the banks. Namely, the Hapoalim-Leumi duopoly and the small coterie of failing bankers that has taken control of them, and of our lives. They’ve wasted our hard-earned savings on reckless loans to cronies (70% of all loans given to 1% of lenders) and created a credit crunch that’s ruined tens of thousands of businesses and stagnated the Negev and Galilee.
Unlike most of our leaders, who are economically illiterate, Netanyahu understands how vital bank reform is. He also has the political courage to challenge the powerful banks in the media, academia, law, and in the “business community” which thrives on monopolies.
If Netanyahu succeeds in finally implementing the reform that the banks have managed to fend off for 20 years, it will immeasurably increase his chances of becoming prime minister again. This is perhaps why so many obstructionists – from the oligarchy’s Hate Bibi Club to the media and the political establishment – are trying to undermine the reform that is virtually a matter of life and death for Israel.
Chief among the obstructionists is Netanyahu’s political rival Ehud Olmert.
Politics and personal ambition, and yes, greed, always seem to trump the national interest.
Olmert must think that Prime Minister Ariel Sharon’s days are numbered, so he opened a succession war. Otherwise why would he reveal his hand so crudely by launching just now – when Sharon needs “industrial peace” within the Likud – a campaign against Netanyahu that will make Sharon’s coalition building efforts more difficult?
Why would Olmert risk damaging an economic reform in which Sharon himself is heavily invested? Moreover, why do it when it is about to succeed and when it is the only significant achievement of the Sharon government?
Why would the calculating Olmert demand an increase in the deficit and budget (which he himself charges contains millions of dollars in hidden surpluses) when he knows the catastrophic consequences this could have? And why would he recklessly dismiss the solemn obligation undertaken by the government to cut the deficit and the budget to reform the economy (including financial markets) as a condition for receiving US government loan guarantees?
Is it proper for a vice-premier to treat with such contempt Israel’s obligation to our sole friend and protector, thereby jeopardizing America’s invaluable support?
A COMPARISON between Olmert’s Hebrew interview in Yediot and his English contribution in the Post is revealing.
In the Post, Olmert’s dismissal of Israel’s obligation to the US is not even mentioned. You will also not find in the Post the offensive (to Olmert’s American supporters) charge that “Netanyahu transplants to Israel the extremist worldview of former British prime minister Thatcher. In a rigid and dogmatic way Bibi exhibits a curious admiration for the Thatcher model of unbridled, extremist market economy that does not fit our torn inflamed society. To apply here such a model is to pour oil on a conflagration threatening Israeli society.”
Olmert’s alternative is to propose a massive increase in government intervention in the economy. The arsonist is shouting “Fire!”
Olmert must know what a wide gap separates the government’s “good intentions” to promote industry, create jobs, improve education, and lower the income gap, and their actual catastrophic outcomes.
If he did not learn it from 60 years of Israeli experience, he could have learned from his own failures: As minister of health, he failed to institute a reform of Israel’s costly, distorted, and bankrupt health system. He failed to incorporate as separate entities loss-making government hospitals. As mayor of Jerusalem, he failed to reform the extremely bloated and corrupt municipal apparatus that consumes terribly high taxes; nor did he do anything to lessen the stranglehold of land speculators whose monopoly the government helps maintain by releasing only small tracts of land (usually to those same speculators), making housing costs so prohibitive.
He ignored the flight of Jerusalem’s young, the city’s economic decline, and did little except ask for more government hand-outs.
Olmert has mostly been the champion of the Israeli oligarchy, helping to preserve their monopolistic privileges. One must suspect, therefore, that his cry for higher expenditures for “the weak” is simply another ruse to get more funds so that they could be dispensed to cronies under the guise of promoting social welfare. It seems to matter little that the cost is undermining the kind of reform that can deliver us from our economic misery.
Sharon, take heed: You think you know your enemies. Beware your friends.
More recent commentary
The New Republic
19 May ’11
Economic Miracle
A Middle East peace strategy that could actually work.
The Jerusalem Post
15 Mar ’11
The government-tycoons-media triangle
Israel needs to slash its state budget by as much as possible if it wants a chance at fighting waste and corruption.
The Jerusalem Post
9 Mar ’11
Welfare and rebellion: The economic factor in the Arab uprisings
Too little attention has been paid to how Egypt’s socialist past and welfare-state present shaped the current rebellion.
The Jerusalem Post
7 Feb ’11
Is all quiet on the economic front?
The Herzliya Conference has become an important international event, but one central issue is absent: Israel’s debilitating economic concentration.
The Jerusalem Post
22 Jan ’11
Teaching an elephant to dance
It’s highly unlikely that government can ever learn to make long-term plans and execute them efficiently.
The Jerusalem Post
23 Dec ’10
Hellenization and Enlightenment: Post-Hanukka ruminations
How can one dare compare narrow-minded religion with the all-embracing faith of universality and equality that is socialism?
The Jerusalem Post
1 Dec ’10
Would Milton Friedman have approved?
Many of the social and economic troubles we are experiencing are due to the public’s lack of understanding of the need for economic literacy.
The Jerusalem Post
17 Oct ’10
Perverting public discourse
The PM’s courageous decision to tackle economic concentration was misrepresented by several of our media publications—owned of course by tycoons.
The Wall Street Journal
8 Oct ’10
Breaking Israel’s monopolies
Economic concentration hurts the country’s viability and the chances for peace.
The Jerusalem Post
4 Oct ’10
Israel’s progress undermined
A damaging ethos of ‘welfarism’ and distributive politics has come to dominate not only academia but our cultural, military and even our business elites.
The Jerusalem Post
19 Aug ’10
Unable to decide
The reformers must know the importance of the reform’s success both for Israel and for their careers, and what damage they will incur if it fails.
The Jerusalem Post
13 Jul ’10
Elana Kagan, terrorism and the law
Kagan’s admiration for Justice Aharon Barak’s philosophy may have revealed her own predilection for radical judicial activism.
The Jerusalem Post
30 May ’10
Yes, break them up
We must dismantle the oligarch-owned monopolies that impoverish the Israeli consumer and choke our economy.
The Wall Street Journal
18 May ’10
Land of silicon and money
The OECD’s invitation to Israel is a “seal of approval” but the country still needs more reforms.
The Jerusalem Post
10 Feb ’10
The surprise of it all
The world’s astonishment at Israel’s response to the Haiti disaster is insulting. What we saw there was Israel’s true face.
The Jerusalem Post
10 Jan ’10
Hi-tech prospects and pitfalls
Individual initiative and freedom are essential for creativity—in hi-tech as in all other spheres.
The Jerusalem Post
14 Oct ’09
A woman who knew her worth
As far as Rose Friedman was concerned, public kudos did not matter that much. She persisted in being a rose, no matter what.
The Jerusalem Post
22 Sep ’09
Movies in Nablus, dramas in Bethlehem
Lasting peace must grow from the bottom up, from an “economic peace process” that proves what advantages peace has to offer on a daily basis. It cannot come from signing peace agreements with radical and corrupt entities propped up by corrupting Western handouts.
The Jerusalem Post
15 Aug ’09
Israel’s ‘scrambled’ economic system
A courageous recent film has exposes the strong connection between Israeli oligarchs and bureaucrats. Unfortunately however the film’s simplistic pseudo-Marxist treatment is more misleading than revealing.
The Jerusalem Post
24 May ’09
The economy: look to the future
Netanyahu paid heavily to pass a budget in time; his “partners”’ bargaining tactics, bordering on blackmail, reflect poorly on our politics.
The Jerusalem Post
4 May ’09
Reform: prospects and pitfalls
Binyamin Netanyahu’s recent economic plan has great promise but faces obstacles—such as the media and the Histadrut—that may undermine its success.
The Jerusalem Post
11 Apr ’09
Big government? Yes, but there’s a reason
Is Binyamin Netanyahu’s government too big? Yes. So why would Netanyahu create such an unwieldy beast?
The Jerusalem Post
30 Mar ’09
To bail or not to bail
Should the government bail out those of our tycoons who cannot redeem NIS 100 billion worth of bonds?
The Wall Street Journal
12 Mar ’09
Mideast peace can start with economic growth
Billions of dollars in foreign aid to the Palestinians has resulted in war not peace. There’s a better way.
The Jerusalem Post
22 Feb ’09
Warning cries from Herzliya
The government is dysfunctional. The question is why—and how to mend it.
The Jerusalem Post
2 Feb ’09
A lesser economic evil
All government deficit spending is bad. But sometimes deficits are unavoidable. And some deficits are better then others.
The Jerusalem Post
22 Dec ’08
Spinners and cheaters
Why not exploit the crisis to destroy what little freedom Netanyahu’s reforms brought to the economy? Why care if the country will lose its only hope of deliverance from the economic retardation caused by our statist heritage?
The Jerusalem Post
3 Dec ’08
Precipitating the next collapse
Focusing on a putative pension crisis distracts our attention from the real serious crisis that a worldwide recession is bound to create here.
The Jerusalem Post
22 Oct ’08
The panic-mongers’ one-note chorus
The country, the pundits conclude, must return to the good old days of “social democracy.”
The Jerusalem Post
15 Jul ’08
The banks are bamboozling us again
In the name of stability the comptroller has ignored many of the banks’ offenses.
The Jerusalem Post
29 Apr ’08
An Irish-style banana republic
It must be either naiveté or cynicism that allows “Israel 2028” to recommend a reform that will make government a larger and a more efficient instrument for economic growth.
The New York Sun
29 Apr ’08
Israel still doesn’t get economy
Israel’s elites—especially the chattering classes in the press and the academy—are hostile to capitalism because our universities’ social sciences and liberal arts departments are dominated by post-modernist and neo-Marxist professors.
Ideas matter. Hostility to capitalism exacts a great price from the Israeli economy and from its hapless workers.
inFocus
2 Apr ’08
US charity to Israel reconsidered
Jewish institutional efforts must now undergo a period of reform and greater accountability. Some charitable efforts should be privatized. Individuals or groups of donors must take personal responsibility for specific projects, to ensure that funds are dispensed in a responsible and cost effective manner.
The Wall Street Journal
8 Mar ’08
Israel’s no-win strategy
Israeli politicians are preoccupied with political machinations designed to buy support from powerful interest groups by distributing government largesse. This causes not only the factionalization of politics and growing corruption, but consumes time and energy that leadership should use to address life and death issues.
The Jerusalem Post
20 Feb ’08
Dangerous infatuation
Government can no more control powerful economic forces than it can the rise and fall of tides. To effectively fulfill its nightwatchman role—to protect us from internal and external violence and to enforce contracts—government must be kept limited.
The Jerusalem Post
22 Jan ’08
What’s ‘public’ about their broadcasting?
Our “public channel,” funded by a compulsive tax, does not need to be pluralistic or even-handed.
Like other public institutions that lack well-defined ownership, Channel 1 has consequently been taken over by bureaucrats and by undemocratic workers’ unions.
The Jerusalem Post
21 Nov ’07
A year without Milton Friedman
This man did more good for humanity than any other.
The Jerusalem Post
17 Oct ’07
Getting beyond the teachers’ strike
As long as education remains a government monopoly, it is bound to function like all other government monopolies, where union bosses fill the vacuum that lack of defined ownership creates, and monopoly power allows them to blackmail the public.
The Jerusalem Post
19 Sep ’07
A healthy dose of skepticism
In the wake of the Second Lebanon War, there is hope that the phenomenal performance of the economy will finally make Israelis realize the crucial role it plays in their lives.
The Jerusalem Post
14 Aug ’07
How to grow Israeli hi-tech
At the recent Merage Foundation conference to help Israel’s hi-tech sector grow, calls were heard for more government “direction”. This despite sixty years of massive government intervention and “development efforts” that have led mostly to massive failures and waste.