News and Updates
In favor of Bibi's economic plan
By Yaron Zelekha
The article explains the macro-economic assumptions relating to the state of the market on which Netanyahu's plan is based. Significantly, it focuses on the growing disparity between supply and demand. Private consumption is influenced by three important factors: current and predicted income, property and instability. What ministers Tzipi Livni and Roni Bar-On don't understand is that the public's pockets have been considerably emptied in the last few months.
In the past few weeks Haaretz writer Nehemia Shtrasler has often criticized the macro-economic plan presented by Likud leader Benjamin Netanyahu, aimed at dealing with the global financial crisis.
Shtrasler particularly focused on two central aspects of the plan: Firstly, the plan proposes offering a complete safety net to individual pension and providence funds. Such a proposal is aimed at preventing the ongoing erosion of the funds and safeguard minimal returns in upcoming years, lessening the damage already incurred. The second aspect criticized by Shtrasler concerns the plan's broad and substantial tax cut proposals for consumers and employees earning up to NIS 15,000 a month. This will help the economy by encouraging private consumption among the middle and lower classes.
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