Huge Protest in Israel Over High Cost of Living
On Saturday night, a tide of popular frustration over the ever-rising cost of living in Israel culminated in an enormous protest, with over 300,000 people taking to the streets. Most of the protesters were in Tel Aviv, where the movement originated, but Israelis also marched in Jerusalem, Modiin, Hod Hasharon, Kiryat Shmona, Eilat, Ashkelon, and Dimona.
"We are not talking about a change of personnel at the top, we don't care about that," National Student Union Chairman Itzik Shmuli told the crowd in Tel Aviv. "We're not demanding a change to the ruling coalition, we're demanding human economic policy that doesn't destroy people, that can see people's distress and that doesn't only crunch the numbers. We're no longer embarrassed to say it's hard for us. We want a home to live in without being enslaved to it our entire lives. We want to work a decent job for a fair wage."
This movement, which is three weeks old, is notably peaceful, at least so far. Little tent cities have sprung up in town squares around the country (mine included). Grievances are aired on hand-drawn posters. Children are at every protest, in strollers and on shoulders. Acoustic guitars are abundant.
As serious as the protesters' grievances are, there's an unmistakable quality of joyfulness to the movement. The sense of common purpose might hearken back somewhere in people's minds to the country's earlier days, when unification over matters of social justice was championed without irony. It might just as easily bespeak a general delight at a collective opportunity to (verbally) trash the government, which is every Israeli's favorite pastime.
There's chanting, there's marching, there's gathering in large numbers. What there hasn't been (yet) is firebombs, or looting, or clashes among protesters, or between protesters and police. This has been a strikingly civil example of civil disobedience.
That is not to say that the protesters are not angry. They are. The protests started when a group of young people, fed up with being priced out of Tel Aviv, pitched tents on Rothschild Boulevard, a leafy, elegant street lined by swanky bars, wonderful restaurants (I took Claire out for a spectacular Japanese meal on Rothschild last March) and lovely apartment buildings. That protest happened to coincide with wider popular outrage over the inexplicably jacked-up price of cottage cheese, and the movement quickly gathered steam. Its organizers are now talking about getting a million Israelis out in the streets, across the length and breadth of the country, on September 3.
(It is perhaps fitting that while the American metaphorical edible is tea, the Israeli metaphorical edible is a plumpifying dairy product. Israelis might have morphed the stereotypical image of the Jew from a pale, physically weak, over-educated, hyper-articulate guy with a preternatural gift for math and physics into a tanned, surfing, tattoo-sporting, board-shorts-wearing guy with a preternatural gift for math and physics. But he's still not going to tolerate any messing with the cottage cheese.)
The Tel Aviv stock market took it in the teeth, plunging 7% yesterday on the double whammy of domestic revolutionary rumblings and the body blow just dealt to Israel's American ally by Standard and Poors. Bibi's government, which was slow on the uptake as the popular movement was gaining strength, is now scrambling to construct a committee. Bibi, who is all about free markets and privatization (he is nobody's idea of a poster boy for a welfare state), said the goals of the new committee would be: "One, a change in priorities, with the goal of easing the economic burdens on Israel's citizens. Two, a change in the mix of tax payments. Three, expanding access to social services. Four, increasing competition and efficiency in the goods and services markets, with the goal of reducing prices. Five, implementing the housing plan we've already launched. The panel's recommendations will reflect the need to maintain fiscal responsibility in the state budget. Such responsibility is especially necessary at a time of economic uncertainty."
Sounds good. Only there's already a snag: yesterday, the cabinet deferred a vote on opening up the dairy markets to foreign competition.
Uh oh.
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Comments :
Mar '11
Re: Huge Protest in Israel Over High Cost of Living
Do they drink Tea in Israel?
Lucky them, for having such a good Government, who will not call the demonstrators terrorists.
Edited on Aug 8, 2011 at 1:52amRe: Huge Protest in Israel Over High Cost of Living
You bet we do. Nana tea, which is tea made with spearmint leaves.
Dec '10
Re: Huge Protest in Israel Over High Cost of Living
Judith Levy
"We are not talking about a change of personnel at the top, we don't care about that," National Student Union Chairman Itzik Shmuli told the crowd in Tel Aviv. "We're not demanding a change to the ruling coalition, we're demanding human economic policy that doesn't destroy people, that can see people's distress and that doesn't only crunch the numbers. We're no longer embarrassed to say it's hard for us. We want a home to live in without being enslaved to it our entire lives. We want to work a decent job for a fair wage."
Judith: I am intrigued by your post. While you laid out the ends that the protesters are seeking, I am curious how hope to achieve them. It sounds like there is outcry for the Government to get involved, but are the demonstrators crying out for more liberty, or asking for a handout?
Mar '11
Re: Huge Protest in Israel Over High Cost of Living
There is a VAST amount of bureaucracy in Israel that makes so much of life impossible. Israel is the only socialist country from the old Soviet Bloc that never had a revolution.
If Bibi were to eliminate the housing/market/pricing bureaucracies, everything would get better, and fast.
Apr '11
Re: Huge Protest in Israel Over High Cost of Living
They haven't seen anything yet. Wait till QE3 kicks in.
Re: Huge Protest in Israel Over High Cost of Living
Depends whom you ask. The protesters don't have close to a consistent message. Students have their own set of demands, as do old-age pensioners. There are single mothers out there demanding public housing assistance, and parents who want cheaper kindergartens. Some -- but not all -- want rent controls, tax hikes on the rich, and a higher minimum wage. None of this is being categorically demanded across the board.
The overwhelming sentiment is simple frustration at working so hard to earn salaries that are simply insufficient for the cost of living here. It's a fundamental imbalance. As one protester said (I'm paraphrasing), we'll die for this country, but the country's not letting us live in it.
Some subgroups have managed to put together a coherent list of housing reforms they'd like to see. Alon Levy has an excellent blog post outlining them.
Dec '10
Re: Huge Protest in Israel Over High Cost of Living
Judith Levy
The overwhelming sentiment is simple frustration at working so hard to earn salaries that are simply insufficient for the cost of living here. It's a fundamental imbalance. As one protester said (I'm paraphrasing), we'll die for this country, but the country's not letting us live in it.· Aug 8 at 7:01am
Thanks for the link. The demands of the protesters don't seem particularly heartening. However the blogger's recommendation seemed like a reasonable way for government to increase the amount housing available without creating the ghettos that sprang up in the US half a century ago.
"3. Low-income people should receive subsidized or public housing. Even if the housing is owned outright by the government, it should be done voucher-style, and buildings should not clearly advertise that they are public. For example, a new public housing company could be empowered and given a budget to purchase small buildings anywhere it wishes, even in expensive neighborhood."
Edited on Aug 8, 2011 at 7:47amMay '11
Re: Huge Protest in Israel Over High Cost of Living
"Plumpifying dairy product"? Do Israelis eat cottage cheese to gain weight? The high price of cottage cheese might arouse anger in some of our citizens but I doubt if many are young and I can't see any of them protesting in tent cities.
May '10
Re: Huge Protest in Israel Over High Cost of Living
"tattoo-sporting"? Chas ve shalom!
Seems like a big part of the problem is old fashioned supply and demand. Too many people for not enough housing. Of course, every time a permit to construct more housing is approved, Obama/Biden/UN get their panties in a wad. I still think the biggest mistake Israel ever made was in not annexing Judea and Samaria and telling anyone unwilling to live there in peace with a Jewish Israel to go to their homeland across the Jordan. They can still do it. There will be shrieking, but, then, there always is whatever Israel does.
BTW, I looked at housing in Israel a couple of years ago. For what we paid for our 4000+ square foot house (plus basement and 1/4 acre lot), we could get a 700 sq ft apartment in Jerusalem. Yikes!
Aug '10
Re: Huge Protest in Israel Over High Cost of Living
This sounds like a good old fashioned bread riot of the kind we've seen for time immemorial. These were very common in the early modern era with grain and more recently we see them with fuel prices.
The typical outline of events begins when some sort of poorly understood change in the fundamentals causes a rise in the market price. People then complain that the market price has become decoupled from the "fair price" and demand price controls and/or attack "profiteers." This then reduces quantity supplied and increases quantity demanded (relative to the market price) which in turn creates shortages and which in turn creates a black market, queuing, and all sorts of other problems.
No good will come of this.
Edited on Aug 8, 2011 at 10:50amMar '11
Re: Huge Protest in Israel Over High Cost of Living
Judith Levy
Some subgroups have managed to put together a coherent list of housing reforms they'd like to see. Alon Levy has an excellent blog post outlining them. · Aug 8 at 7:01am
This is a TERRIBLE list! It is fresh out of the Progressive playbook!
How about increasing supply by:
1: Selling government-owned land at auction. The Israeli government owns 93% of the land. Sell all non-military land in an open auction.
2: Eliminate zoning, housing regulations, permitting.
3: Eliminating all crony capitalism in the land - all government-backed monopolies from power to land lines to dairy foods.
That'll open the market up just fine!
Edited on Aug 8, 2011 at 11:25amSep '10
Re: Huge Protest in Israel Over High Cost of Living
Judith Levy
Some subgroups have managed to put together a coherent list of housing reforms they'd like to see. Alon Levy has an excellent blog post outlining them. · Aug 8 at 7:01am
Yikes for me as well.
This is an excellent example of how even the notorious intelligence of the Jewish people can be for naught. I like to think that perhaps this is the left, thin-end of the bell curve marching the streets, but it seems like too many for that.
It is at least easier to understand why Jews vote Democrat.
Apr '11
Re: Huge Protest in Israel Over High Cost of Living
Thanks so much for this, Judith. Like Beasley, I am quite interested in this story. I first heard about it on NPR (I know, I know) last week (you might want to steer clear of the reader comments). My favorite quote:
Bezalel Aloni came to the protest with his children and grandchildren. Aloni, who describes himself as well into his 60s, said he was appalled at the lack of housing assistance provided to younger generations.
"When we were a young couple, we could easily afford an apartment. The state helped pay for most of it for us," Aloni says. "But quickly, this country has changed."
The newly born Jewish state had socialist ideals, says Aloni, and that included subsidized housing for young people and new immigrants.
Please do keep us posted on this. And for the record, Israeli dairy products are to die for.