Protectionism is NOT The Answer to Ailing Israeli Economy
Written by: Aaron Katsman | April 22, 2009
With inflation in Israel already starting to surge, a new initiative to pass a law to use only local suppliers for procurements, is a sure fire way to create even more inflation. Israel should procure items from the suppliers who charge the least for the products. Not pay 20% more to buy from a unionized Israeli firm.
Manufacturers Association president Shraga Brosh- who always is calling for government intervention in the economy- is up to his old tricks. According to Globes: “Brosh added that Israel needs a law giving preference to local products. “The government should promote procurements from domestic enterprises, especially those in outlying areas, because the government is the biggest procurer in the economy. Negative income tax should be applied nationwide, because this money goes toward net consumption.”
Hey Shraga. Maybe if Israel was more competitive the current economic situation would be better?
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