Saturday, July 11, 2015

The other side of the drachma - Dror Eydar



by Dror Eydar


While the Left doesn't trust human nature when it comes to economic matters, the opposite is true when it comes to foreign relations. When dealing with foreign issues, all wariness disappears and we are asked to blindly trust nations that openly call for our destruction.


1. In these complex times, I am focusing my attention more on economic issues. The deeper I investigate, the more I find a fascinating link between the Left's diplomatic and economic ideas. 

The Left promotes massive government intervention in the economy, oversight over prices and taxes, raising minimum wages, etc. Last weekend, demonstrators against the emerging agreement between the government and natural gas developers called out "only nationalization will save the nation." 

God help us. In other words, the Left doesn't trust the power of the free market. The Left doesn't trust anyone whose natural human inclination is to make a profit to understand that in order to do that they have to compromise and ensure that others profit as well. As far as the Left is concerned, basic human nature is evil and moral economic choices must be imposed on mankind by way of economic laws. 

But here is the question: Is it moral to violate agreements and contracts? How does doing that help the economy? There is not a lot of drilling underway off Israel's shores. In light of massive recent natural gas discoveries there, we should be seeing investors lining up to explore our territory, but we are not. They look at how we abuse the companies that have already discovered natural gas and they keep their distance. 

In response to a recent column I wrote on the topic, a friend of mine who works with very rich Jewish investors wrote to me, explaining their response to Israel's gas controversy. According to him, their attitude is "contributions (to Israel) -- yes. Investment -- absolutely not." Imagine a contractor who signs an agreement with the residents of a building to renovate the existing apartments in exchange for the right to add two new floors that would belong to him. After renovating the building and investing a lot of money in the existing apartments, the residents come to him looking to renegotiate the deal. The roof is ours, they say to him, you are making too much profit. 

While the Left doesn't trust human nature when it comes to economic matters, the opposite is true when it comes to foreign relations. When dealing with foreign issues, all wariness disappears and we are asked to blindly trust nations that openly call for our destruction. We are asked to blindly trust jihadi terrorist organizations and pieces of paper that they sign. Wasn't that the case with the Oslo Accords? Isn't this how they keep trying to lure us? The temptations of "peace" include the promise of an economic paradise, but the reality has taught us that peace made of paper actually requires building a bigger army than ever. It is enough to think about the economic implications of a terrorist pointing a shoulder-mounted missile at Ben-Gurion International Airport from the hills of Samaria to dash the fantasy of an economic paradise. In the event that their lofty ideas actually fail, the response among the Left is similar in both economic and diplomatic cases: denial. 

The Right and the conservatives, incidentally, hold the precise opposite view: Trust the citizens and the market forces and try not to interfere with economic processes, but on the other hand, mistrust the enemy and make them fear you. This view may appear to be simplistic, I know, but it has proved itself. And by the way, isn't "Peace Now" simplistic too?

Just like magical solutions in the diplomatic arena ("make love not war"), socialist solutions are also an easy sell. We all want to help the weak and the foreign and the poor and we all want to make an honest living. The question is how we do it. Rabbi Joshua Ben Hananiah, from the first century C.E., already taught us that there is a short way that ends up being long and there is a long way that is ultimately the short way (Babylonian Talmud, Tractate Eruvin 53b). In short, there are no shortcuts. 

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2. This week, the citizens of Greece voted against paying back their debt -- a massive, nearly unimaginable debt. To receive a bailout, the Greeks were asked to submit to a list of austerity measures in an effort to improve their economy. The measures include raising the retirement age, revoking tax and salary benefits, dismissing some employees from the bloated public sector, increasing competition and more. But Greek Prime Minister Alexis Tsipras was voted into power after promising the exact opposite, as socialists are wont to do, as they increase government spending. 

Tsipras was elected on Jan. 25 this year. More than two decades ago, the young prime minister was a member of the Communist youth in his country. While he served in the opposition, during a meteoric rise to the leadership of the radical leftist coalition known by the collective name "Syriza," he opposed the Greek government's austerity program, which was part of the European plan to extricate Greece from its immense debt. 

Three days after he was elected, Israeli MK Dov Khenin (a member of Israel's Communist party, part of Hadash and now the Joint Arab List) wrote a Facebook post full of glowing accolades for the Greek prime minister: "This is how the Left should behave. Note what they have managed to achieve in only three days: They raised the minimum wage to 750 euros; halted the privatization of government companies and public resources; raised pensions for low income earners; reversed the dismissal of public workers; revoked the co-pay requirement for doctors' visits and prescription medication," and on and on. That is all well and good, but where does the money come from? 

Three months later, at the end of April, German paper Bild reported on a phone conversation between Tsipras and German Chancellor Angela Merkel, in which Tzipras asked for more financial assistance and European flexibility. In other words, he said to Merkel: We're out of money. Oh, right. 

In their defense, say the disciples of the Greek socialism, the current government is dealing with the poisonous fruit left over by the rightist leadership. But that argument simply doesn't hold water: With the exception of five years between 2004 and 2009, Greece has been ruled by socialist or socialist-majority governments for the last 22 years. 

Between 2003 and 2007, Greece enjoyed an impressive economic boom (Athens hosted the Summer Olympic games in 2004) of an average of 4%. My friend Eran Bartal wrote this week that part of this growth was based on a lie, because the growth of the public sector was linked to the growth in the business sector: "Say I earn 1,000 shekels and I give my children 500 shekels for behaving well or for cleaning the house or the car. Technically, my children and I have earned a total of 1,500 -- I earned 1,000 and they earned 500. That is the model for Greek growth." 

Every country needs a strong public sector, but it is the business sector that finances it. In Greece, the business sector was expected to generate massive, unrealistic profits in order to fund the monstrous public sector. That would have been possible only in the beautiful socialist fantasies. True, Germany is also guilty of the original sin, allowing Greece's failed economy to join the eurozone. What bank would lend money to someone who is clearly incapable of paying off his debt? 

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3. Speaking of the results of the Greek referendum, it is rather entertaining to see the Left here in Israel praise the Greeks for proudly standing up to European coercion. Is it not the same Left that always chides the rest of us for confronting Europe and the U.S. on fundamental issues on which Israel thinks differently than they do? 

But the result of the referendum vote does not indicate that the gods of socialism have revealed themselves to the Greek masses. It is simply the result of the fundamental national nucleus that exists within any nation, and certainly a nation as ancient as Greece. It turns out that national pride is more important than paying off debts. That is kind of funny considering the political nature of the current Greek government. 

We encountered a similar phenomenon here in Israel during the last election. The Likud party won a resounding victory of 30 Knesset seats precisely because of the tremendous pressure by the left-wing parties and the media to defeat it. Quite a few people voted for Likud not necessarily because they love the Right, but because they hate the Left, or, more accurately, its way of trying to dictate to the people how to vote and what to think. Let us hope that the Greek financial fiasco will serve as a warning sign for us.


Dror Eydar

Source: http://www.israelhayom.com/site/newsletter_opinion.php?id=13129

Copyright - Original materials copyright (c) by the authors.

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