Israeli Parties' Economic Plans Analyzed by Experts Amidst Public Distress

Despite stable economic growth, most Israelis feel financially strained, working more hours but experiencing a decline in purchasing power compared to their European counterparts over the past 20-30 years. This sentiment is exacerbated by the state's historically low investment in civil services like education and healthcare, a situation likely to worsen with increased defense spending. Israelis feel they are paying twice: through taxes for subpar services and again for private solutions. In response to this widespread economic hardship, N12, in collaboration with experts from the Israel Democracy Institute, the Berl Katznelson Foundation, Arlozorov Forum, and Kohelet Forum, developed a questionnaire for major political parties. The parties were asked to detail their plans for addressing key economic issues affecting citizens, including the cost of living, housing crisis, wages, net income, civil services, and workforce integration. The responses were then analyzed by experts for their feasibility and potential for being mere populist promises. The Likud and Shas parties declined to provide specific answers, leading to an analysis based on their past actions and public statements. The analysis highlights that Israeli prices are significantly higher than the OECD average, particularly for food and housing, which constitute a large portion of household expenses. Furthermore, Israelis work longer hours than the OECD average for lower real wages and receive less vacation time. The public also feels they receive poor value for their taxes. The article details the parties' proposed solutions for these issues, with expert commentary on their practicality. Specific attention is given to integrating Haredi men and Arab women into the workforce, as their lower employment rates impose a significant financial burden on the average Israeli worker and the state's budget.