Page 10—THE NEWS—November 1979
Year in Review — Israel’s Precarious Economy
by Yitzhak Shargil
TEL AVIV, (JTA) - While
Israel is engaged for the first
time in its history in the process
of implementing a peace treaty
with one of its neighbors, the
precarious state of the nation’s
economy poses a threat to its
survival. The danger is com
pounded because in the
economic sphere, appearances
are deceptive.
To the casual observer, Israel
this year was a country of boom
ing prosperity, a flourishing
healthy economy, full employ
ment — too full in fact — and a
well-heeled consuming public
enjoying the good things of life.
At least a half milUon Israelis
vacationed abroad during the
past summer, each allowed to
take $3000 in foreign currency.
New car sales soared to an all-
time peak despite astronomical
prices and the highways are
jammed. Israel has yet to in
troduce color 'elevision;
nevertheless, 110,f 0 color TV
sets were sold in recent months.
Every Israeli fit to work has a
job or can have one and the
labor market is seeking at least
30,000 more workers. In addi
tion to Israelis, the country
provides regular employment
for some 70,000 Arabs from the
occupied territories who get
their jobs legally through the
labor exchanges and an es
timated 20,000 more who cir
cumvent the legal channels.
Several thousand Lebanese
from south Lebanon commute to
jobs in Israel daily.
A Grim Reality
But this rosy picture conceals
a grim reality. Israel this year
was caught in the worst in
flationary spiral in its history.
The inflation rate is expected to
exceed 80 percent by the end of
the year, probably the highest in
the world, and at the moment
there seems to be no way to con
trol it. Inflation is fueled by
feverish consumerism. Israelis
do not save their money because
it shrinks rapidly in value.
Those who do save invest in
cost-of-living index related
government bonds which only
adds to the internal debt.
But Israelis are buying
everything available. They are
spending their money mainly
on expensive durable goods
such as cars, refngerators and
TV sets at ever higher prices. As
demand increases, manufac
turers hire more workers and are
ready to pay higher wages. But
the more Israelis consume, the
less there is to export.
Exports increased at the
meager rate of three percent this
year and the country may face a
$4 billion balance of payments
deficit, its cumulative foreign
debt now stands at about $17
billion. At the current rate, it
will reach the danger point of
$25 billion in four years at
which time the government will
experience great difficulties in
getting foreign credit.
Trying,to
Fight Inflation
Fighting inflation is not an
easy task for a, government
which depends on coalition
partners to muster, a majority in
parliament. When the likud
government came; to power two
years ago, the .controversial
American economist, Milton
FViedman, was invited here to
offer suggestionsi Friedman’s
conservative philosophy and es
pecially his view that a degree of
unemployment is necessary to
reduce inflation, raised an out
cry in labor circles.
The likud government can
not permit itself to create un
employment for that would sure
ly lead to its downfall. So the
government has taken only
half-way measures against in
flation with very little success.
It has been unable to cut down
on its own expenditures primari*
ly because defense needs
swallowed a third of the present
IL 320 billion budget. And
because of inflation, the budget
will have to be increased by
about IL 70 billion.
The Housing Problem
Connected to the inflationary
spiral is the housing problem
which is a social as well as an
economic problem. Housing
construction, a basic branch of
the economy is slowing down. In
the last two years, the price of an
apartment has tripled, the price
of land went sky-high and con
struction starts have diminish
ed. Israel’s construction in
dustry is not highly mechaniz
ed. Building is time consuming'
and more costly than in other
countries. A small two-room flat
in Tel Aviv, Jerusalem or Haifa
costs over IL 1 million and there
are no apartments for rent at
reasonable prices.
This situation carries the
kernel of social unrest as newly
married couples find it impossi
ble to pay for a home of their
own. It contributes to the
phenomenon of emigration
among Israelis — yordim. In re
cent months the emigration rate
was 2000 per month and it is not
likely to be stemmed unless the
price of housing can be brought
down to affordable levels.
Israel has just informed the
United States that its budgetary
deficit for the fiscal year begin
ning Oct. 1,1980 will amount to
about $3.4 billion. But hopes are
not high that the U.S. will cover
that deficit with grants, con
sidering the recession and infla
tion in America. Some American
aid will, of course, be forthcom
ing. On the other hand, the U.S.
will indirectly feed Israel’s infla
tion by pouring money into the
new airfields to be built in the
Negev, replacing those in Sinai.
^cause of that danger, the
entire project will be a closed
venture. But no one will be able
to prevent the foreign workers
from spending their money in
Israel nor will the American
contractors deny themselves
70
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products and services on the
local market, thereby competing
with Israeli consumers.
Picture Not
Entirely Bleak
Still, Israel’s economic picture
is not entirely bleak. Export in
dustries have made enormous
strides. Only last year, $550
million worth of Israeli goods
that were the result of local
research and development were
sold abroad. The entire in
dustrial export was $3.5 billion
and there was a significant ex
port of military hardware such
as the Gabriel missile and the
Kfir jet interceptor. Industry is
shifting more to sophisticated
electronic systems and there is a
continuous stream of in
vestments.
Regarding the gradual nor
malization of relations between
Israel and Egypt, experts expect
it will have little effect on
Israel’s economy in the year
ahead because local industry,
geared to the requirements of
the European market, will need
time to adapt itself to Egyptian
market demands. Moreover, it
will take several years of peace
before trade relations between
the two countries will develop to
a point where it will be a signifi
cant factor in their economies.
Summing up, Israel’s
economic targets for the coming
year are to put a brake on infla
tion; close the balance of
payments gap; and step up
housing construction. Mainly,
the dangers of social unrest and
increased polarization between
the rich and the poor must be
avoided.
Goldberg Seeks
Council Seat
Gene Goldberg is seeking the
7th District seat on the City
Council in the election to be held
November 6th. Gene is running
as a democrat against the en
cumbent.
Gene has been active in both
the Jewish and Civic com
munities for many years.
Among his activities he has
served as President of Charlotte
Lodge B’nai B’rith, State Vice
President, B’nai B’rith, Chair
man Redmont Counties March
of Dimes, President Queen City
Toastmasters, and Area Gover-
nor Toastmasters Inter
national. He has also served on
the Board of Directors of Mc-
Crory YMCA, Temple Israel, the
Afternoon of Arts
'L
(Continued from Page 1)
are seen on rotating display in
the JCC lobby. For many of
these artists it began as a Mnd
of fun experiment; for others it
was the opportunity to ^fill a
long time ambition. In both
cases it has evolved into a
satisfying and even profitable
avocation. Families and friends
vie for the paintings and con
sider the acquisition of one as a
prize to be proudly and
prominently displayed in their
homes.
Beverly Howard, CPCC art in
structor for CHAI for the past
two years, indicates that on
December 2nd a number of pic
tures not previously seen will be
displayed. Many of these will be
for sale. “It’s more than an op
portunity to meet an artist and
acquire a fine piece of work,”
says Ms. Howard. “It is a
chance to be inspired by ac
complishments which show
how strong the human spirit
really is.”
Jose* Beato
Jose’ Beato, a virtuoso on the
Spanish guitar, will perform at
330 p.m. His repertoire includes
the classics, flamenco, and
traditional songs of Spain.-In
particular for this performance
he will play several selections
from the “Ladino’^ (Spanish-
Jewish) tradition.
The presence of the classical
guitar in the life of Jose’ An
tonio Beato was always cons-
tant and strong. Even
throughout a twenty year bank
ing and administration career,
he has managed to combine his
professional life and perfor
ming, studying and teaching
guitar, which he began to play
at the age of twelve.
Music and the guitar weighed
heavily in his decision to leave a
promising banking career in
Barcelona, Spain. Along with
his wife, Yvonne (formerly
“Luclde” Huskey of Charlotte)
and eight year old son, Wf^sley,
Jose’ Antonio made th« ! \
move, well aware of all involvec
in so complete a change of life
style. He decided to leave a well
established way of life to test the
possibilities of his musical
talents.
Jose’ Antonio Beato’s style is
perhaps unique to what has
been introduced in the South
east, reflecting his love of
flamenco and the popular songs
of Spain, South America, Mex
ico and Italy. This combination
offers interesting facets of the
classical guitar and a pleasant
introduction to its vast
resources.
Speaking about the entire
a^moon’s program, Marvin
Bienstock, JCC Director, says,
“It is an early Chanukah pre
sent to the entire community
from the JCC. It’s more than
either a cultural afternoon or a
sale. It is an example of the kind
of talents present in the JCC
and in the CJharlotte communi
ty. This is the kind of afternoon
^m which everyone can derive
pleasure, and the Board and
Staff of the Onter hopes
everyone will come and do just
that.”
There is no admission charge
for the afternoon. Refresh
ments will be served.
A man should never be
ashamed hc>(8_bBen jn_
the wronfit* whicnis but saymg
in other words, that he is wiser
today than he was yesterday.
Jonathan Swift
Pay your
Federation
pledges
Gene Goldberg
American Red Cross,
Providence Day School,
Charlotte Athletic C^ub, Heart
Fund, National Conference of
dlhristians and Jews and Queen
City Optimist Club. He has also
chaired committees for various
other local, statewide and
national organizations.
Marlene, his wife, and (jene
' have lived in Charlotte 24 years,
and are members of Temple
Israel. They have three children
• Steve 22, Marsha 20, and
Marion 13 and all of them are ac
tive and involved. Marlene is
currently serving as recording
secretary of the JCC as well as
having been President of B’nai
B’rith Women and on the Board
and Vice President of Temple
Israel’s Sisterhood.
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