Is It Win at All Costs for Netanyahu?

The Bibi haters are out in full force today, charging that PM hopeful Benjamin Netanyahu has thrown his 'free-market' principles to the wind and will do/say anything to get elected.

Nehemia Shtrasler writes in Haaretz: "It will be interesting to see where else Benjamin Netanyahu goes in his eager pursuit of voters' hearts. He wants so badly to sit in the prime minister's chair that he is even willing to scrap his entire economic worldview and masquerade as Histadrut chairman Ofer Eini."

He says that Netanyahu has given up his ideology in order to get elected. Calling for a broad pension safety net, increasing child allowances and a large increase in government spending, Bibi has basically moved his policies to be in line with those of national labor chairman Ofer Eini.

I am not a big fan of Shtrasler but he does make some good points. Instead of calling for more spending and basically abandonding budgetary discipline, Netanyahu should be out there championing lower taxes, and incentivizing entrepreneurship. After all, the real engine to economic growth is not bailing out billionaires, but it's by encouraging small and and mid-size business creation.

As for the pension safety net, Shtrasler is correct on the facts but wrong on the safety net. He says, " He knows that this "safety net" is a regressive, antisocial policy that no other country has adopted. And who knows better than he that the people have not lost anything in the provident funds, but have in fact earned a profit? From 2003 through 2007, these funds posted a very nice profit - 66 percent. Only this year have there been a loss - 20 percent. In other words, the gains far exceed the losses. So why should we be transferring money to people who made a profit?"

No question that much of this discussion is based on zero facts. Most pensions increased handsomely since Bibi opened up the system. I am not for a broad safety-net. We need to follow the Chilean pension model. Chile faced a bankrupt pension system, and they decided to privatize the system by allowing people to have individual savings accounts. But for those approaching retirement they were given a choice. Accept the new system or you could take a guaranteed pension from the government. Basically a safety net for those close to retiring. That's exactly what we should do here in Israel. For those 5 years away from retirement, give them the choice of accepting a guaranteed government pension, or letting it ride in a private account.

This is the kind of policy we need Netanyahu to speak about. We don't need him encouraging building a road or bridge that no one needs.

Obama Advisors Temper Expectations

According to a CBS2Chicago report, advisers to Pres. elect Barack Obama are worried that expectations are too high and are working to try and lower them. "President-elect Barack Obama and his inner circle fear that some voters expect him to turn around the economy, wind down the war in Iraq and, perhaps, cure cancer -- all by the Fourth of July."

Well I may be mistaken, but wasn't Obama the one who raised these expectations? He has been going around for 2 years, promising to 'fix what's broken',' make history' and ' change the world.' Heck he even has a plan how to crown a college football national champion.With rhetoric like this who needs expectations?

He got elected because he convinced enough people that he can fix everything. He is like a real life Schneider- from One day at a Time. Now his handlers are saying he can't actually do this, and the country better be prepared for this fact.

A bit disingenuous, don't you think?

Spitzer Gets Lucky....Again

I guess it pays to be a politician. Apparently any type of crime that regular people would be prosecuted for, just isn't serious enough for a politician. Former New York Governor Spitzer, was let off the hook(er) yesterday. According to the NY Post: " I acknowledge and accept responsibility for the conduct it disclosed," he said of the federal investigation. "I resigned my position as governor because I recognized that conduct was unworthy of an elected official."
US Attorney Michael Garcia said Spitzer "has acknowledged to this office that he was a client of, and made payments to, the Emperors Club VIP," an international prostitution ring busted in March.

Just a reminder, Spitzer was busted after the news story broke that he paid $1,000 an hour for sexcapades with call girl Ashley Dupre at the Mayflower Hotel in Washington.

Funny that other people involved in the prostitution ring are doing jail time. The Post says: "Aside from the Emperors Club, Spitzer has also been linked to an escort service called Wicked Models. Its former ringleader, Kristin Davis, said last month that Spitzer was a client, but said she never personally serviced him. Davis has pleaded guilty in Manhattan Supreme Court to promoting prostitution. "

I guess there is a difference between the promoter and the promoted.

Anyway you look at it, Spitzer seems to have gotten lucky once again!