The Real Israeli War - Class Struggle

Between 2008 to 2013, the GDP in Israel grew by 3.6%, in comparison to an average of only 0.65% among OECD countries. Despite this, the findings indicated that this growth was “not enough” to bring Israel up to par with Western European countries, as Israel’s GDP per person in 2013 stood at $37,000 compared to $55,000 in Sweden and $45,000 in Germany, according to theAdva Center’s annual report. 

“But the fruits of this growth, rather than trickling down toward the bottom as the policy makers suggest, trickled unnaturally, upwards,” the report stated.

While the economy grew, so did the share of the national income among the employers from 8% in 2002 to 15% in 2012. In contrast, the share of the national income among workers decreased from 67% in 2002 to 62% in 2012. The salaries of 99% of Israelis did not increase in relation to the economic growth experienced these past few years, while the salaries of leading corporate managers significantly increased. In 2013, the average salary of five top corporate executives in leading Tel Aviv companies was 36 times greater than the average Israeli worker’s monthly salary of NIS 9,212 and 77 times greater than the minimum wage of NIS 4,300.

The GINI index measures the level of a country’s inequality; with 0 being total equality and 1 being complete inequality. According to the OECD findings, in 2011 Israel was ranked fifth out of 34 countries, with a score of 0.377, after countries like Turkey, Mexico, and Chile.

In 2013, the average monthly salary in Israel stood at NIS 9,030, while the average monthly salary for Arab employees stood at NIS 6,076. The average monthly salary for Jews of Ashkenazi origin stood at NIS 11,897 compared to a salary of NIS 10,033 among Sephardi Jews.

The report cited that in the Beduin town of Rahat, the unemployment rate as of September 2014 stood at some 33.3% – similar to other Arab municipalities throughout the country such as Umm al-Fahm (30.8% unemployment), Tamara (23.9%), and Sahnin (24.8). In addition, Jewish municipalities in the periphery had much higher rates of unemployment than central cities and localities, such as Yeroham (16.4%) and Dimona (15.4%).

“Netanyahu, Lapid, and Bennett are promoting a concept according to which society serves the economy and not the economy which serves society. This is an economy that sees society as a means to increase the profits and assets of tycoons. It is time to change the order of things – economy in the service of society,” said Prof. Yossi Yonah, a professor at Ben-Gurion University of the Negev.