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Obama can copy us By Nehemia Shtrasler Tags: Barack Obama, Israel News There is no question that the United States is shifting to the left. It has clearly decided on a significant change in its economic policy. We can argue whether Barack Obama will lead the country to "sensitive capitalism" or "a market economy with a social policy," but it is clear that a big change is about to occur after eight years of a pure capitalist regime. Big changes can only be made through the tax system. And Obama has promised to raise income tax on the rich, raise the ceiling for Social Security taxes, and increase taxes on corporations, dividends and capital gains. At the same time he has said he will lower taxes for low-wage earners. This is a significant change in the distribution of American income. In social affairs he intends to raise the minimum wage, propose a national health insurance plan and strengthen the unions. He also plans an aid package for homeowners with mortgages, an aid plan for the car industry, large investments in green industries, higher investment in science - and all this will require a major increase in the federal budget. Advertisement These big changes have made quite a number of Israeli politicians and commentators happy; those who say we also need to follow Obama's lead: increase the budget, raise taxes on the rich and spend much more on social programs and infrastructure, because if the United States can do it, who are we not to follow? But that is a huge mistake. It comes from a basic misunderstanding of our position on the map of economic ideology compared with the United States. If we draw an imaginary line between capitalist and social-democratic systems, we will see that the United States is on the far right of the spectrum, while Europe and Israel are at the opposite left end. We can prove this using a few figures. Public spending is the main statistic showing the government's involvement in the economy. In the United States, public spending is among the lowest in the world. It is only 35 percent of gross domestic product, while in Israel it is 44 percent of GDP, the same as in Europe. This means that here we have higher taxes, which are much more progressive. In Israel the top 20 percent of wage earners pay 80 percent of income tax, while the lowest 50 percent do not pay income tax at all. Here marginal income tax reaches 47 percent while in the United States the highest level is only 36 percent. The state provides many more services here than does the American government. We have a magnificent health system that provides health care for everyone, even if they pay absolutely nothing and have 10 children. The high taxation on the upper deciles pays for it. But in America there is no national health insurance, so 46 million people have no health insurance whatsoever. Here we have free public education through the end of high school, and there is no private education. In the United States, public schools are on a low level, and anyone who can afford to sends their children to private and expensive schools. Here the universities are all public and tuition is low. Over there the best universities are private and tuition can reach $30,000 a year, 10 times the cost here. Here we have an entire system of social insurance that does not exist in the United States. There are child allowances and standard deductions. There they have only deductions and no child allowances. In Israel we have 110,000 families that receive guaranteed income support, while in America all you can receive is food stamps. Here the infrastructure belongs to the state: electricity, water, land, ports and airports. There everything is privatized. Here we cannot fire employees easily, and we do not throw people out onto the street. We have the Histadrut labor federation and unions. In the public sector there is job security, and large private institutions have a union that prevents layoffs. The American brutality connected to anything related to labor relations does not exist here. This means we simply are not playing the same game. Our policies are much more humane and considerate of the weak. Here we are basically social democrats with a market economy, not capitalists in the U.S. mold. So if the Americans want to start moving to the left, as last week's election results show, we don't have to do the same. We don't need to copy Obama, he should copy us. Bookmark to del.icio.us   No light at the end Amira Hass / Powerless in Gaza, residents rely on the tunnels. Offensive strikes Report: U.S. secretly attacked dozens of Mideast targets since 2004.   1.   Correct analysis, Obama is far away from being a "leftie"... 09:57  |  Swiss (Dino) 11/11/08   2.   JEWISH TZEDAQA MEANS "JUSTICE," AND IS THE ANSWER, NOT SOCIALISM! 10:45  |  VOICE of MOSHIACH))) 11/11/08   3.   dino you know nothing. be quiet for a moment 11:11  |  obamama 11/11/08   4.   I can only hope, 11:12  |  Isaac 11/11/08   5.   IT wasn`t a capitalist system 11:35  |  Said 11/11/08   6.   My thanks to Nehemia Shtrasler 11:59  |  Natallie Durson 11/11/08   7.   WITH THIS MANDATE, HE CAN DO WHATEVER HE WANTS 12:14  |  indrajaya 11/11/08   8.   Capitalism is in the human nature 12:40  |  Hastaroth 11/11/08   9.   NATALIE USA aid to Israel is spent in the USA.Billions to Arabs? 12:48  |  PETER SM 11/11/08   10.   # 7 indrajaya 13:00  |  Swiss (Dino) 11/11/08   11.   who is footing the bill Nehemia 13:12  |  Eli Eli 11/11/08   12.   #6 thank you Natallie always allowing us to present our case 13:26  |  x-ray 11/11/08   13.   state control never solved anything 14:18  |  g. lee 11/11/08   14.   INDRAJAYA YOU DO NOT KNOW MUCH ABOUT DEMOCRACY DO YOU? 15:08  |  PETER SM 11/11/08   15.   nehamiah is afraid 15:21  |  nelly 11/11/08   16.   The American already copied Israeli Leftists 15:53  |  Frank 11/11/08   17.   # 14, PETER SM 16:05  |  indrajaya 11/11/08   18.   Welfare isn`t necessarily a measure of social good 16:30  |  Nachum Levin 11/11/08   19.   #7 Indy..."do everything he wanted to do to 16:45  |  Lynn 11/11/08   20.   #17 Indy....once the Iraq/US Treaty is signed 16:50  |  Lynn 11/11/08   21.   Indrajaya... 16:57  |  Uri 11/11/08   22.   # 19, LYNN 17:13  |  indrajaya 11/11/08   23.   Hardly "pure capitalism" 17:53  |  examiner 11/11/08   24.   #20 `once the Iraq/US Treaty is signed` 17:59  |  Pit BullwithLipstick 11/11/08   25.   Nehemia" failure 18:29  |  izak 11/11/08   26.   Misnomer 19:48  |  Baz Mann 11/11/08   27.   #17 Indrajaya why do you waste your time with that idiot 21:02  |  Labhras 11/11/08   28.   #20 Lynn Still believing in that being signed --Soon. 21:11  |  Labhras 11/11/08   29.   Nutalie #6 21:19  |  JoJo 11/11/08   30.   #6 Nuttalie 21:26  |  JoJo 11/11/08   31.   Memo to Shtrasler: My U.S. tax dollars pay for Israel`s `success` 22:41  |  peacelover 11/11/08   32.   Natallie #6... surely you realize that this comaprison 23:44  |  Esther 11/11/08   33.   PEACELOVER.Confused?Welfare by the billions goes to Moslems 00:43  |  PETER SM 12/11/08   34.   Obama can copy us 00:49  |  Edward Frank 12/11/08   35.   INDRAJAYA "can do whatever he wants" is not democracy 01:01  |  PETER SM 12/11/08   36.   NEHEMIA forgets certain things (respectfully) 01:02  |  VIPER 12/11/08   37.   Obama bad for business 17:01  |  T A Sheppard 12/11/08   38.   Israel Doesn`t Get It 19:46  |  Jack Olson 12/11/08

Read & React Nasrallah: Israeli hands that attack Lebanon will be severed Responses: 100 Mortars hit Negev after IDF kills 4 Gaza gunmen Responses: 65 Carlo Strenger: Why Barack Obama's win is 'good' for the Jews Responses: 57 Secular candidate Barkat, after win: I'll be mayor of all Jerusalemites Responses: 27 Amir Oren: A Netanyahu win will put us on collision course with Obama Responses: 48 More Headlines 19:39 Peres: Arab peace plan - a serious opening for real progress 19:49 Mortars hit Negev, hours after IDF kills four gunmen near Gaza 17:11 Syria: IAF to blame for uranium traces at suspected nukes site 16:59 Carter: Obama will waste no time pursuing Middle East peace 19:48 Court issues temporary order to stop building in West Bank settlement 17:13 Netanyahu: For sake of peace, Israel must aid Palestinian economy 03:24 Footage emerges of Obama poking fun at 'foul-mouthed' Rahm Emanuel 14:11 IDF soldier jailed for yawning during Rabin memorial service 18:19 Who's your mayor? A look at the results of the '08 mayoral races 14:52 Iran says it test fired new surface-to-surface missile capable of hitting Israel 09:42 Secular candidate Barkat, after win: I'll be mayor of all Jerusalemites 19:53 UNRWA spokesman: Gaza blockade is a siege on the UN itself 12:05 Cabinet: No extra NIS 500m to reinforce Gaza-area homes 18:40 Police order diplomats to cancel Hebron walking tour 11:40 Why Barack Obama's win is 'good' for the Jews Previous Editions Select Day 11 nov 10 nov 09 nov 07 nov 06 nov 05 nov 04 nov 03 nov 02 nov 31 oct 30 oct 29 oct

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