Saturday, August 20, 2011

Unrest in Israel

An Israeli friend recently pointed out that the middle class unrest in Israel was a dangerous development with potentially disrupting consequences for that fledgling democracy.  He gave several reasons which did not comport with those in this analysis by Ran Baratz.  If one believes the Baratz analysis the problem is the incomplete transition from a socialist state to a free market economy begun a decade or so ago by Netanyahu when he was the Finance Director in Stone's cabinet.  Among the reasons for the unrest given by the Israeli friend was the polarization of wealth into the hands of a few families and the fact that costs of housing was almost prohibitively high.

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