A wake-up call for business sector leaders
Prof. Eran Yashiv warns that business sector leaders are not internalizing the depth of the expected economic crisis following the doubling of the defense budget, the departure of high-productivity workers, damage to foreign investments, and international sanctions. He calls on them to act to spread public warnings before the elections.
Prof. Eran Yashiv, an economist from Tel Aviv University, warns in an opinion piece on ynet that business sector leaders in Israel do not understand or internalize the depth of the economic abyss toward which the country is hurtling. According to him, in line with the Spartan vision, the defense budget has doubled from its level on the eve of the government's formation and could triple. The economy will be able to bear this burden only if there is a sharp decrease in the budget in other areas, which will lead to a heavy reserve duty burden, harm to many people's livelihoods, or tax increases that will hurt the middle class. The already high cost of living will rise even further. At the same time, the departure of high-productivity workers – hi-tech workers, doctors, engineers, and researchers – is increasing, as is capital leaving the economy. The number of new startups is low, and there is a decline in investments from abroad. Yashiv also notes British and Dutch sanctions on products from the settlements and independent steps by business companies abroad. He attributes the situation to Prime Minister Benjamin Netanyahu, who he says understood that the only way to stay in power is to perpetuate war, and has led Israel to international isolation. Yashiv calls on business sector leaders to use the media and financial means at their disposal to spread public warnings before the elections.