Economic Deep State in Israel Drives High Living Costs Through Regulation and Market Concentration
How 2 Israeli newsrooms covered this story — translated into English and compared side by side.
First reported by Walla · Aug 15, 2026
What happened
Professor Moshe Cohen-Eliyahu reveals that Israel's high living costs stem from an entrenched economic deep state of regulation, market concentration, and interest groups. This system inflates prices across sectors like food, cars, and housing, with government control and regulatory capture limiting competition. Addressing these issues requires systemic reforms to break up concentrated power and open markets.
- 01Israel’s high living costs result from entrenched regulation and market concentration, not secret cartels.
- 02Price gaps of up to 226% exist between direct and parallel imports of identical products.
- 03Direct importers control over 97% of Israel’s car market despite reform efforts.
- 04Housing supply is constrained by government control and lengthy planning processes lasting up to 13 years.
- 05The revolving door between regulators and industry aligns incumbent interests with public narratives.
- 06Reforms must dismantle this economic deep state to reduce prices and increase competition.
Summary translated & synthesized from the sources below by baba. Read each original for the full report.
Full coverage · 2 outlets
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