Israel Faces Economic Uncertainty and Social Divisions as New Year Begins
As the Jewish New Year תשפ"ו (2025-2026) commences, Israel grapples with significant economic challenges and political divisions, contrasting official narratives with on-the-ground realities. The housing market has seen a 1.5% decrease in prices since the previous Rosh Hashanah, with new apartments dropping 2%, yet rental prices have climbed 4.8%. This downturn persists despite a booming stock market, with the TA-35 index rising 41% over the past year, a period marked by rocket attacks and a halt in foreign flights.
Economically, the outlook for תשפ"ז (2026-2027) is grim, with the Bank of Israel governor warning of "no free lunches" and recommending tax increases. Potential measures include raising VAT or eliminating specific tax exemptions, alongside reinstating taxes on sweetened beverages and disposable utensils. This economic pressure is juxtaposed with a stark contrast in public transportation costs, where a taxi ride in Batumi, Georgia, costs approximately a tenth of a similar ride in Israel, attributed to a lack of competition in the Israeli taxi market.
Politically, the article criticizes the opposition's inaction regarding the stalled appointment of a state comptroller, a position vacant for over two and a half months. The author questions why the opposition isn't leveraging this issue, especially with a High Court of Justice case pending on the matter. The piece also touches upon Prime Minister Netanyahu's attempts to shape public perception, particularly concerning the aftermath of the October 7th attacks and Iran's nuclear program, which the author dismisses as "toxic media" and historical revisionism.
Despite the governmental and economic challenges, the article highlights a positive aspect: the significant contributions of private individuals and organizations to social welfare, education, science, and culture. Philanthropists like Udi Angel, Eitan Wertheimer, the Arison family, and Chaim Katzman are recognized for their substantial donations to healthcare and education projects, filling gaps left by government funding. However, the author notes a lack of similar contributions from insurance companies and the high-tech sector, urging them to increase their philanthropic efforts.