No one asked the citizens who stormed the Bastille in Paris during the French Revolution where they had been up until then. Their violent attack was understood as an expression of their deep, ongoing frustration and repression. Revolutions take place when corruption peaks, and when at least some of the public loses confidence in the government's desire, or ability, to solve problems. When national economies suffer from severe structural issues -- a massive national deficit, large external debts in proportion to the gross national product and a high level of unemployment -- little attention is paid to problems of domestic justice and equality. States will do everything they can to save their economies, and only a healthy national economy can repair serious domestic mistakes. Israel's national economy has developed into one of the strongest, most competitive economies in the world -- not on a per capita level, but in terms of overall national stability -- thanks to a responsible economic policy, on the macro-level, that began when Benjamin Netanyahu served as finance minister, and has continued during the tenure of Finance Minister Dr. Yuval Steinitz. Over the last decade, we have succeeded in increasing commercial production by no less than 75 percent and the economy still has momentum. This is precisely the right time to start dealing with domestic problems, including inequality and achieving an equal distribution of national wealth. We can accomplish a lot right now if we act with integrity, honesty and courage, and if we free ourselves from superficial conceptions that propose branding as a substitute for content. A government can prove its seriousness and credibility, and gain the confidence of its citizens, by offering not just immediate solutions, but real ones that will change problems on a structural level. Such a government can only succeed in fostering change if it refrains from a pandering and self-effacing relationship with wealthy outsiders. We dont really need them. Too much Israeli capital flows outside the country due to corrupt bureaucratic processes, which can make doing business in Israel in more than a few sectors a bit repulsive. The first thing we have to do is establish a more just tax system. This means reducing taxes to reasonable levels for those earning lower wages, stabilizing the tax rates for the middle class and increasing taxes for the wealthy. We might also devote a bit more thought to those in the lowest socioeconomic bracket, who earn the minimum wage. We must accelerate the process of raising the minimum wage, as this is the strongest and most effective step toward the proper distribution of national wealth. Of course, a lot can be done about lowering housing costs and rent in Israel as well, as the prime minister suggested this week. Netanyahus plan can be integrated with others already outlined. Decision-makers must avoid rash action; we will pay for it dearly later. This happened, for example, in the early 1990s with a massive and hasty building effort meant to deal with waves of immigration. This is not the solution now.
