Can Israelis survive financially until a vaccine for COVID-19 is found?
879,131 Israelis are seeking work, and the country currently has an 11.9# unemployment rate.
By HAGAY HACOHENIsraeli self-employed protest the lack of financial support from the Israeli government in times of Corona, when many find themselves unemployed, on Rothschild Boulevard in Tel Aviv, July 7, 2020. (photo credit: MIRIAM ALSTER/FLASH90)
Israel is facing record levels of unemployment and the economy is shrinking with the GDP dropping by 10.6%, according to the Central Bureau of Statics (CBS).Prime Minister Benjamin Netanyahu and Finance Minister Israel Katz have championed two major projects, the Check for Every Citizen Plan and the Safety Net Program. Another NIS 8.5 billion program meant to create 10,000 jobs was announced this week. But are they effective?The unemployment service reported 879,131 Israelis are seeking work. CBS is reporting an 11.9% unemployment rate, with the Finance Ministry suggesting that by the end of the year it could go up to 15%, KAN reported on Monday.One of those seeking work is David, an oleh (immigrant) from the EU who had been out of work since July.“I’m now earning half of what I used to,” he told The Jerusalem Post, “and paying more attention to my spending.”David heard about the Check for Every Citizen plan but still didn’t get the NIS 750 grant.“It should be more,” he said, “NIS 750 is not enough.”He noted other countries are also offering benefits to their citizens in an attempt to get the economy moving again and pointed to how many people in his circle of friends are “running out of work because of COVID-19.”“We won’t see any growth [in the economy] until a vaccine [for COVID-19] is found,” said Prof. Rafi Melnick of the Interdisciplinary Center (IDC) Herzliya.“The government should keep all of its ammunition for the post-vaccine time,” he said.Noting that it is vital to look after the well-being of those out of work and restore the health and education systems, Melnick pointed out that until a silver bullet for COVID-19 can be found, “the money being spent will increase [Israel’s] debt and deficit without producing any benefits,” The Marker reported.Pointing to how shoppers were sheepish to return to shopping centers in China after the outbreak was under control in that country, Prof. Leo Leiderman from Tel Aviv University admitted that he would not be the first person to board a flight or attend a concert, even once a vaccine is proven to work. Leiderman had spoken during a digital panel held by Bank Hapoalim last week.2020 is “a lost year,” he said.Julia, a school psychologist living in the south of the country, didn’t check to see if she and her husband and two children got the Check for Every Citizen Grant.“I have a full-time job and luckily I don’t need this money so badly,” she told the Post. “This isn’t really helping people out. I see it as Netanyahu spending money to appeal to the public.”Speaking about her part of the country, she reports some people are experiencing hardships, “but nobody lost everything they had.”She reported that the start of the school year in two weeks is a lot more crucial to her than these benefits.“That too had nothing to do with Netanyahu,” she said. “The start of the school year on the right foot here is only because we are lucky enough to have a proper local council.”In theory, the emergency unity government created by the Likud and Blue and White could form a state budget to include massive infrastructure and digitalization national projects to create new jobs, as well as ensure Israel’s economy will be ready to meet the demands of a post-COVID-19 global economy.In practice, the Knesset approved on Monday the postponing of the August 24 deadline by 100 days on first reading. If the law doesn’t pass a second and third reading, the government must pass a budget in six days or take the country to elections.
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