Israel's High Cost of Living Ignored in Election Debate, Expert Says
Translated & summarized from i24NEWS French by baba
Economic issues, particularly the high cost of living, are surprisingly absent from Israel's election campaign despite the country being the second most expensive globally. Specialist Yaëlle Ifrah attributes this to monopolies and insufficient regulation, noting Israelis work significantly longer hours for basic goods than citizens in other developed nations. Politicians are reportedly prioritizing polarization and post-October 7th issues over these complex economic challenges.
The story in 5 lines · by baba
- Israel is the second most expensive country globally, yet the high cost of living is absent from election debates.
- Economic specialist Yaëlle Ifrah blames monopolies and poor regulation for disproportionately high prices.
- Israelis work nearly 60% longer than French citizens to afford the same ten basic grocery items.
- Households in Israel dedicate 18% of income to food, exceeding the OECD average of 13%.
- Politicians are reportedly focusing on polarization and the aftermath of October 7th instead of economic issues.
Despite Israel being the second most expensive country in the world, the high cost of living has been notably absent from the public and political debate ahead of elections, according to Yaëlle Ifrah, a specialist in economic issues. This contrasts with 2022, when economic promises, such as free childcare and lower produce prices, were part of campaign strategies, even if secondary. Prime Minister Benyamin Netanyahu, despite his past experience as finance minister, has largely sidestepped the issue this year.
Ifrah attributes Israel's high prices, second only to Switzerland but without comparable purchasing power, to poorly regulated privatizations and insufficient competition oversight, resulting in over 40 declared monopolies. She argues that the state is not adequately fulfilling its role as a regulator, allowing dominant companies to exploit their positions.
While some candidates like Yair Golan and Gadi Eisenkot have touched on social injustice and dismantling monopolies, others, including Bezalel Smotrich and Itamar Ben-Gvir, have remained silent on the issue. Naftali Bennett, living in Raanana, a diverse community, may be more attuned to the problem.
Ifrah emphasizes that the focus has been on macroeconomic issues rather than the daily impact on average Israelis. She highlights that the cost of basic goods, like milk, is 60-80% higher than the OECD average. "Israelis don't lack income, it's the prices that are disproportionate," she stated.
To illustrate the burden, Ifrah calculated the time needed to earn enough for ten basic products. In Israel, this takes 5 hours and 36 minutes for a minimum wage worker, compared to 3 hours and 9 minutes in France. This means Israelis work about 60% longer for the same items. Households in Israel also spend 18% of their income on food, versus 13% in the OECD. Ifrah concludes that when a wealthy country demands over five hours of work for basic necessities, the issue transcends technicality and becomes a moral one.
She suggests politicians are currently more focused on polarization and the aftermath of the October 7th events, neglecting complex economic realities that are harder to address than social media posts.
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