Opposition head and Yesh Atid chair Yair Lapid presented a plan on Tuesday to save Israel’s economy from crisis and help the struggling middle class.
While the plan was as political as you would expect coming from an opposition leader, including such empty gems as “they are raising taxes, we will lower taxes,” Lapid did focus on many of the most important, and existential, challenges the economy faces.
Most importantly, the plan centered the needs of everyday Israelis and looked unflinchingly at the political third rails that have threatened the country’s economy for many years and become far more threatening as the war has exacerbated economic challenges.
Lapid highlighted the country’s deficit, warning of the dangers of it ballooning out of control and sending Israel’s interest on debt repayment soaring even higher.
He touched on the fact that one of the country’s fastest growing sectors does not serve in the IDF and does not participate productively in the labor force at a time when the country’s security needs are increasing and growth has stagnated.
Addressing an often-disregarded truth, he said that Israel’s middle class is ignored as it buckles under the strain while taxes are raised and the cost of living increases. He stressed that Israel must invest more in its future through education, planning for disruptive technologies such as AI, and invest in infrastructure that will enable growth.
Lapid’s prioritization of the people is in almost direct opposition to the priorities laid out by Finance Minister Bezalel Smotrich late last year when touching on the central tenets of the plan for the 2025 budget.
One of Smotrich’s main priorities was to form a budget that could be passed through the government. This means that political considerations were a central tenet in the plan for the 2025 budget – the budget set to help Israel get through the Israel-Hamas War and rebuild and recover from the massive damage the war has caused.
For context, the current government’s 2023-2024 budget was much more sectoral and made extensive use of coalition funds compared to previous budgets and coalition agreements.
It’s important to note that the allocation of coalition funds by the current government was often in direct contradiction to national priorities. An example is the increased funding of ultra-Orthodox education systems, which do not teach core curriculum subjects necessary for effective labor market participation.
Lapid castigated the government for putting political considerations ahead of the needs of the people, stressing the need to regain public trust in the economy and the leadership.
In his plan, he laid out a series of actions and focuses divided into four categories, touching on many of the most crucial problems facing the country, as well as solutions.
He called to give regulators more tools to reign in businesses and to enable imports – both aimed at fighting the soaring cost of living. He also advocated cutting coalition funds and unnecessary government spending and strengthening local governance.
He stressed the need for investment in education that would support growth but slightly missed the mark in calling only to strengthen STEM and English topics in schools.
Interests of country first
Humanities education is vital in any country striving to maintain the institutions and systems needed to participate as a major player in the global economy. Learning history, philosophy, ethics, and global studies is absolutely necessary for this.
The plan laid out was ambitious, imperfect, and not fully fleshed out for the press. But most importantly, it was a plan aimed at placing the interests of the country and the people above political and narrow sectoral interests.