Sunday, July 31, 2011

The Truth About the Housing Protests

Yes the cost of housing in Israel is high. The question is "why"? Well you do not have to be Stanley Fischer to know the answer: it is called supply and demand. There is a lot of demand for housing, while supply is lacking, hence high prices.

The expulsion of thousands of people from their homes in the Gaza Strip and Northern Samaria six years ago did not help the housing shortage. Certainly the various building freezes that were imposed on Israel by the Obama administration did not provide the homeless with with a place to put their heads. The hundreds of thousands of illegal migrants living in Israel also play a part in the housing crisis. However, even without these factors, it seems to be that that the crisis would still be here, although to a lesser degree. Let's hope that the government takes steps that will help in the long term without harming Israel's surprisingly strong economy.

With regards to the tent protests, the Israeli public knows very well what is going on. They know who is funding it, and they know what their true objectives are. We are talking about the nefarious New Israel Fund. As Emily Amrousi wrote:
Furthermore, it is clear that the demonstrations were professionally organized and publicized. They're about as authentic as a bottle blonde. The same could be said for the media's blatant mobilization to the cause.
I also saw the following from Dror Eydar:
The demonstrations over housing and the cry of the middle class require fundamental treatment, and one gets the impression that the proposed plan is aimed in that direction. The government -- with its leaders, ministers and advisers -- has to continue repeating the principles of the economic plan, and start working in the field. That's the way the hypocrisy of the professional inciters will be revealed, and they will be left on their own with their anger.
In summary, we are talking about a genuine problem and a largely bogus protest movement.

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