Sunday, November 23, 2008

Drop in Israeli Poverty: Experts Say It's Bad

Surprise, Surprise. A strong economy and low unemployment did more to lower poverty in Israel than years and years of welfare payments. Critics have continued to hammer at PM wannabe Bibi Netanyahu's economic policies, but once again we have hard evidence that they work. While Netanyahu was slammed for cutting welfare and other transfer payments to the poor, and said that the best way to get them moving upward economically was to cut taxes and produce a strong economy. Strong job growth would go much further in alleviating poverty than continued transfer payments.

Well the so-called 'protectors of the poor' cried and cried saying that we need more social justice and we need to increase child allowance payments, and increase unemployment benefits, otherwise we will have even larger poverty.

Wrong! It always amazes me that these elitists are always wrong. In today's eagerly awaited report on poverty, we see the number of poor declining. How could that be? Here's a thought: lower unemployment, meaning that some of the poor actually got jobs.

According to the Jpost: "According to the report, the economic quality of life for families across Israel improved from 2006 to 2007 meaning that in 2007, economic growth managed to reach the lower-income sector of society. "

Now the experts are warning about a return to higher poverty rates in '09 due to the economic slowdown. That may very well happen, but the solution is not to expand unemployment benefits. The solution is to cut taxes and encourage private sector economic expansion, as they are the ones who will create real jobs.

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