israels problems stem from its socialist background - Comment - Israel News | Haaretz Daily Newspaper
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    • zionist forevrr
    • 23.05.13 | 22:04 (IDT)

    In the pre state era they were working to build settlements and the didn't own anything themselves they were working for the community. Then came 1948 and the idea of working for the community expanded to working to build a state also a large percentage of the population were Jewish refugees who had nothing anyway and the government owned and subsidised just about everything. There also wasn't all that much to buy anyway so money stretched further. Then the state developed and we started working for ourselves not the community and so money became more important but when t came to work the old idea of you work for a greater good not yourself stuck so people worked longer hours for less money that their western counterparts and its a cuture we have been unable to get out of. Then there is the growing population and everybody wanting to live in the coastal and central regions leaving the rest of the country undeveloped and so property prices are getting more and more expensive as the population grows, also get more luxury buildings because the people with money don't want to live on the traditional 10 floor small concrete blocks on stilts, they want modern homes so land gets sold to them. As we all want to live in the same part the country anyway land is expensive in general. So people who can afford to buy their homes ( even in old buildings ) have a hard time paying the bills, people who buy to rent as an investment they have had to pay alot for the apartment so they charge high rent ( they are not charities ). Tel Aviv is the 17th most expensive city in the world and the most expensive in the Middle East but as the free market sets property prices nothing that can be done about it. A problem government can do something about is bank lending practise because they don't make borrowing easy and the mortgage process is a nightmare compared to other countries. Again though all of this basically stems from the countries socialist past so its socialism that cause a large part of the economic problems not military spending etc

    from the article: Debt-rescheduling has exceeded all bounds in Israel - hopefully, that's going to change
    First published 02:11 22.05.13 | Last updated 02:11 22.05.13
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