As a complete layman when it comes to economic matters, I don't know enough to take a stance for or against Finance Minister Yair Lapid's decision to increase the deficit ceiling.
But it goes without saying that the finance minister owes me and other ordinary citizens who pay taxes in full compliance with the law some answers. And not just any answers. He needs to provide them from the Knesset podium, not the private forums to which he flees when he wants to avoid the other Knesset members' remarks.
He is raising the deficit ceiling, which means that his fellow ministers will receive greater budgets, instead of the cuts that awaited them. I'm sure they won't object. And the Opposition triad of Shelly Yachimovich, Aryeh Deri and Zehava Gal-On is already cheering for him. Absolute bliss.
The problem is that up until now, Lapid, Prime Minister Benjamin Netanyahu, former Finance Minister Yuval Steinitz and Bank of Israel Governor Stanley Fischer have all warned repeatedly that the budget must be cut with an iron fist, that it is imperative to cover the existing deficit, which has grown to a monstrous 40 billion shekels ($11 billion). If we don't, they warned, we will end up like Cyprus or Greece. What are Lapid and Netanyahu (assuming he supports Lapid's tack) telling themselves? We'll deal with it later? Let's just make sure that the chaos doesn't hit during our term, and in the meantime, eat drink and be merry?
Lapid's change of heart warrants an explanation. And if the deficit grows from 40 to 50 billion shekels ($15 billion), will there be any salvation for the export industry or the commercial sector? If so, why wasn't the same true a year ago? Or six months ago? Or even three weeks ago?
Money is the engine that drives the economy, but it is not alone. The economy also runs on psychology and faith. How can an average citizen believe his leaders' prophecies of doom and gloom when they change them in the blink of an eye? The debate is being conducted on two contradictory levels. Whom should we believe? The doomsday prophets turned reckless spenders, or their rivals-
The average citizen will have to choose one of two formulas to believe: Either he has been fed nonsense so far, or he is being fed nonsense now.
Lapid cried out his mantra, "Where's the money-" when the deficit reached 40 billion shekels. His children, or his successor, will be asking the same question when the deficit reaches 50 billion shekels or more and the Israeli government will mimic the government of the neighboring island and shut down banks and confiscate citizens' savings. Then, every citizen of Israel will know where the money was.
טעינו? נתקן! אם מצאתם טעות בכתבה, נשמח שתשתפו אותנו