Again, proof was provided for the Israeli link between immigration and economic growth, the latter doubling to an average rate of about 6% - the highest rate of growth in the Western world in the first half of the 90s.
Each wave of immigration, whose initial absorption represented an economic burden on the Israeli economy, turned into a blessing when these immigrants joined the circle of production - thereby contributing towards increasing the national product - in a relatively short period of time, thanks to the capital that could be made available for this purpose The rapid growth that characterized the country's first twenty-five years came to an end with the Yom Kippur War in 1973, due, among other things, to the drop in the rate of growth of the population.
Of all the branches of the Israeli economy, industry has grown the most: its growth rate is higher than that of the total national product; industrial exports have increased more than total exports; and the number of people employed in industry has risen more than in any other branch of the economy.
Reduction of Economic Inequality
As in all Western countries, a progressive income tax system in Israel serves to reduce inequality of income between individuals in the economy.
In fact, if the Israeli economy only had at its disposal the means resulting from its own product, the tremendous level of public consumption and the savings required to finance the investments necessary for continued GNP growth would have made this the case.
Israelâs education system produces many tertiary graduates but there are wide gaps across society and core skills at secondary school are weak, as discussed in this working paper.
While manyAncient Near Eastern societies labored to reconstitute and to remodelthemselves according to the values of the previous era, the written testimonyof one society, ancient Israel, challenged traditional concepts of politicallegitimacy, human rights, and polytheism.
Emphasizes that long-term changes to Jordans
economic situation are dependent on other countries such as the
United States as well as on Jordan.
Inequality may be a problem in the United States, and concentration of assets a problem in the banking sector, but the American economy is very different from Israel’s. In Israel, the economy is more like South Korea’s when its chaebols dominated or West Germany’s in the 1950s when family groups controlled a number of industries. In the United States, businesses are competitive, and outside the financial sector, there is vibrant competition. Even in finance, there are good arguments that a $15 trillion economy needs large banks.
A version of this article appears in print on 01/08/2014, on page of the edition with the headline: Overhaul of Israel’s Economy Has Lessons for United States.
In a global world, the proposed context for managing monetary policy includes a primary goal–long-term price stability--and a secondary goal–tempering business cycles. The main policy tool is short-term interest rates. In Israel there were two clear deviations from stable interest rate parameters; in 1998 and again in 2001. Both times, lowering the high interest rate created turmoil. Interest rate policy, in a global world as well, must therefore be stable (interest smoothing), while adhering to medium- and long-term inflation targets.
The process of exposing the Israeli economy to international trade has been completed in many spheres, and it must continue until it is fully completed, including in infrastructure spheres. The resulting advantages for the Israeli economy are clear, including lower prices and a higher standard of living. They also include a savings in foreign currency, stemming from cancellation of the trade anomalies that had previously existed. The question of legally institutionalizing various levies, including the anti-dumping levy, remained in dispute regarding the extent to which this tool should be used.
Being he is a Roman Catholic, Israel does remain a place of importance to him and a majority of monotheistic religions today but should we continue to support them.
Technological improvements and progress are one of the important factors underlying globalization. In the 1990s, the information technology (IT) and communications sector in Israel grew five-fold, reaching 14% of GDP. The size of this sector increases the economy's vulnerability to exogenic fluctuations in the sector (similar to what has happened over the last two-and-a-half years). Furthermore, political-security instability is liable to lead to a flight of knowledge workers–and knowledge is this sector's main asset. Taken together, all of these factors create increased vulnerability that impacts on the entire economy.