Income inequality in Israel- a conversation

First of all, don't believe everything you read. Note the source of these "statistics" and what the agenda is:

http://en.wikipedia.org/wiki/Adva_Center & http://en.wikipedia.org/wiki/Mizrahi_Democratic_Rainbow_Coalition

One must be critical of proposed statistics from organizations with a such a clear anti-capitalist and ethno-centric agenda: Adva is a well known organization that seeks to advocate the rights of the so-called "Mizrachim."

In their report, they claim that: " "The government and decision-makers are putting all the efforts to boost a renewal of growth in the economy. However, economic growth by itself will not reduce inequality."

That is ridiculous! Economic growth is the MAIN cause in the reduction of poverty and consequently, the improvement of the standard of living. It is China's economic growth that lifted tens of millions of its citizens from abject poverty! Sure, there are now hundreds of Chinese millionaire and many billionaires who make 100s of times more than the average Chinese worker, but that average Chinese worker lives much better than he did 10 years ago because of economic growth.

Adva claims that 8% of Israeli children in 1981were below the poverty line and today its about 1 out of 3. However, I would first like to see if the statistics were based on the same data and methods. Also, what constitutes as the poverty line? Many times it is based on an archaic "basket of goods" that many say is out-dated. In 1981, there were no mobile phones, playstations, expensive toys, kids fashions etc, so what constitutes as the poverty line and a good standard of living? Also, the segment of the population that were poor back in 1981 came from the same mileu - the same as today- the arabs and haredim, who since 1981 have grown by having more children who then, in turn, grow-up not wanting to work because of the same backward beliefs of their parents- I think that is a big reason for the income gap and those living above the supposed poverty line.

As for Israel, it does in fact support the weaker segments of society through healthcare/social security and food subsidies, etc, but also with special programs for new immigrants and those that live in the periphery, not to mention welfare payments to able bodied people who refuse to work because of supposed religious reasons (Arab women and Haredim).

What Adva supports is a socialist style of redistribution of wealth, ie from our pockets into the pockets of people who didn't and don't want to go to University, nor do they necessarily seek a better job for themselves or improve their situation. These people prefer to be pizza delivery boys or house wives. They rather complain about the rich and professional classes making more money and hoping that they will get more government hand outs taken from those who studied hard and worked hard to get to where they are today!

As for Adva's statistics for women, you'll find that inequality gaps in pay between men and women are found in EVERY country, even in the EU. What these stats don't say, is that the hours worked by women is less than those of men on average because of maternity leave. These statistics are usually calculated by taking the total hours worked to get total pay, women will always earn less on average according to these statistics because they are the ones who take months off every few years for maternity leave- that is just the way it is.

Also, Adva claims the difference in pay between Mizrachim and Ashkenazim is frankly rediculous as well! Who is a Mizrachi and who is Ashkenazi? 99% of the immigrants from France are of North African origin and no doubt they earn a good living here, perhaps better than some "Ashkenazim."For example, there are many Ashkenazim from the former USSR who work as security guards or in the lower working classes. So I am not sure what or even how Adva qualifies its statistics or if it is even relevant to the discussion of poverty.

As for the periphery vs the center, the government actively encourages people to move to the north and south of the country, including incentives to students, industrial parks, immigrant subsidies, housing subsidies, tax breaks etc… BUT only private industry can truly make an impact in the peripheral areas. The government cannot simply redistribute wealth from the Gush Dan to the peripheries; this follows the old saying, it's better to teach someone to fish than to just keep giving him fish to eat. This is why aide programmes in Africa have failed in the past 50 years, while recent Chinese direct corporate investment has made enormous economic impact in Africa today…

The government does play and should continue to play a role in encouraging economic growth and facilitating an improvement in education and infrastructure in order to increase socio-economic mobility. But outright redistribution of wealth is catastrophic and should only be done in order to support the ill, elderly, or disabled in our society (not because they are darker skinned or born in Asia/Africa!).

http://www.jpost.com/servlet/Satellite?cid=1261364509068&pagename=JPost/JPArticle/ShowFull

http://www.ynet.co.il/articles/0,7340,L-3825148,00.html

Adva's report: http://www.adva.org/default.asp?pageid=1002&itmid=574