Facing criticism over his mismanagement of the Covid-19 crisis, Prime Minister Binyamin Netanyahu (Likud) announced Wednesday night a 6 billion shekel redistribution of money to the public, according to which all Israeli citizens over the age of 18 will receive a government check.
It’s actually fascinating to see Netanyahu, a stalwart advocate of the “free market” who – as finance minister – cut child benefits to large families, now redistributing money to the Israeli people.
According to the prime minister’s plan, families with one child will receive 2,000 shekels, families with two children 2,500 shekels and families of three or more children 3,000 shekels.
Individuals 18 and older will receive a check of 750 shekels according to the plan.
“Why do we give out this money?” Netanyahu asked rhetorically. “Because we have to get the economy moving!”
“People are sitting at home. They do not make purchases. When we give them this money, they will buy. It encourages consumption – they will go to buy. And once they go to buy, businesses expand.”
Netanyahu said that the total cost of his plan is 6 billion shekels, which will be in addition to a coronavirus “safety net” plan that he and Finance Minister Yisrael Katz (Likud) unveiled earlier this week.
“After this plan is approved, it should be understood that most Israelis will receive this money within days through the National Insurance Institute,” Netanyahu assured.
He added, however, that his plan still requires approval from Defense Minister Benny Gantz (Blue & White), who did not attend the Wednesday night briefing.
“It is not clear that we will not have to pass legislation. I expect the coalition to support the plan so that we can transfer it to you, the Israeli citizens,” Netanyahu said. “The emphasis is speed. If we start arguing, this will take a long time. Maybe not months, but weeks.”
While a number of ministers from the Labor party, Blue & White and even Netanyahu’s Likud criticized the plan, calling it populist and irresponsible, the prime minister did receive support from a lawmaker he rarely expects praise from.
Member of Knesset Tamar Zandberg (Meretz) lauded Netanyahu’s efforts, saying that “the grant is the right thing to do, and it’s right that it be universal. It will give families money to spend on a shrinking economy and businesses that need it.”
Netanyahu’s move can benefit the Israeli people but only if it isn’t limited to a one-time check. This can’t be a populist tactic for political survival but a longterm policy that demonstrates national responsibility for helping people meet their basic material needs. Expanding the initiative into a monthly universal basic income – even if only for citizens earning below an agreed upon number each month – can make a serious difference for a large percentage of the public.
The money for these monthly checks can come from taxing foreign tech companies that regularly exploit Israeli workers for research and development. Or perhaps from Israel’s natural gas profits. In 2012, Netanyahu’s government announced plans to set up a sovereign wealth fund – called the Israeli Citizens’ Fund – that would allocate a percentage of royalties from energy exploration to Israeli education, defense and overseas investments. Due to the crisis at hand, it might make sense to divert that money to a monthly universal basic income for the Israeli people – especially families most in need.
Go ahead Netanyahu and bankrupt the state. Let people work and generate income for their families and revenue for the state. This will sink the shekel’s value for your fellow globalists.