The country is rich, the citizens pay: how the 'economic deep state' works | Prof. Moshe Cohen-Eliya

Prof. Moshe Cohen-Eliya argues that the high cost of living in Israel stems from an economic power structure, not a secret cartel. He cites the State Comptroller, who found price gaps of up to 226% between direct and parallel imports, and notes that in 2023 direct importers held over 97% of the car market. He also points to 13 years from planning to occupancy in housing, and the revolving door phenomenon. He criticizes the Kaplan protest for sanctifying established economic forces.

In an opinion piece, Prof. Moshe Cohen-Eliya argues that the high cost of living in Israel is not the result of a secret cartel or conspiracy, but of an economic power structure: a system of regulation, entry barriers, concentration, and ties between institutions that has formed over decades. He cites the State Comptroller, who found price gaps of up to 226% between direct and parallel imports, and notes that in 2023 direct importers held over 97% of the car market. In housing, he notes that it can take 13 years from planning to occupancy, and that the state, which controls land, planning, and licensing, creates the shortage. He describes the revolving door phenomenon, where regulators and the regulated switch roles, and emphasizes that effective power structures do not require corruption. He criticizes the Kaplan protest for rebelling against the political power of the right, but sanctifying economic forces identified with the old hegemony. He calls for opening imports, lowering entry barriers, breaking up concentration, limiting the revolving door, and accelerating planning and construction.