“While Netanyahu cites crumbling southern European economies as examples to avoid emulating, he seeks to cure the ailing Israeli economy in much the same manner that Athens has sought to save Greece’s: addressing the debt problems through an anti-growth version of austerity, meaning more taxes and more government intervention in our lives.
It hasn’t worked in Greece and it is bound to fail in Israel since the austerity measures that have been implemented in Europe and are soon to be rolled out in our fair country are based on a false premise – that there is a conflict between growth and government austerity.
In essence, the European model for austerity is one that requires the private sector to pay more taxes and pay for debt it didn’t incur so the governments can stay bloated. Afterall, if a country’s economy isn’t recovering, it must be due to too little government spending, right?”
Read the entire essay as it appears in the Times of Israel: