The Cabinet on Sunday (July 4, 2010) by a 20-10 vote, decided to oppose two bills regarding the minimum wage. The Cabinet also noted Finance Minister Yuval Steinitz’s statement that he intends to table soon the draft 2011-2012 budget law, which will include negative income tax. If passed into law, the minimum wage would have guaranteed a monthly salary of NIS 4,600. The prime minister maintains that the passing of the bill would have resulted in increased unemployment.
The bill was presented by Labor Party MK Amir Peretz, and its defeat is significant regarding internal Labor Party politics and coalition realities.
Prime Minister Binyamin Netanyahu said that, “I welcome Finance Minister Steinitz’s statement that the next budget will include a negative income tax for the entire country. This is the proper answer to all citizens who work, but whose wages are low. This will encourage employment, as opposed to the other proposals, which would increase unemployment. This is also the reason why we have received the full support for this outline from professionals in the Prime Minister’s Office and the Finance Ministry, as well as from Bank of Israel Governor Prof. Stanley Fisher and National Economic Council Chairman Prof. Eugene Kandel.
(Yechiel Spira – YWN Israel)
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8 Responses
Are all the chareidim happy now? All those who vote RIGHT WING ONLY, all those who speak about the horrible left?
Thanks for NOTHING.
daniel breslaur what is your problem? you want to pay the arabs more? you never worked a day in your life right?
“minimum wage” doesnt even make any sense at all.
Daniel Breslauer (NO. 1) says:
“Are all the chareidim happy now? All those who vote RIGHT WING ONLY, all those who speak about the horrible left?”
SUCH IGNORANCE OF BASIC ECONOMICS!
The wages that an employer pays a worker are based on his productivity. If he’s produces more, he gets more.
If you force employers to pay more than an employee is woth, then marginal workers and beginners will not be hired at all. There will be much fewer entry-level jobs for young people who want to start off in life. This is not a good thing.
Mr. Netanyahu has, wisely, endorsed a negative income tax for low-wage earners, which means Government charity to help those whose productiviity just doesn’t justify a higher wage.
That’s the right way to help such people, without destroying the viability of the businesses that provide the jobs
Shouldn’t the article state what the current minimum wage is? Incomplete.
Current minimum wage in Israel is 20.70 which equals a little more than $5 an hour. In America min wage is closer to $7 something.
Here in Israel its acceptable for many non profits(amutah) to start off at min wage as well as other places and those jobs are still hard to come by. In america, min wage type jobs are generally easy to get with no education or experience.
“Current minimum wage in Israel is 20.70 which equals a little more than $5 an hour. In America min wage is closer to $7 something.”
And in America my rent was $1000. Here it is just over $400. And in America my health insurance was over $200. Here it’s about $12. Need I go into utilities, food, etc.?
That because you live in Haifa. In Jerusalem, my rent is around 1000.
The only things which I have found to be really cheaper here are tuition , health insurance, and labor.
Utilities and food are comparable in price to what I paid in America.
Transportation is cheaper only if you go with bussing which yes, many people do but a car would be more expensive than in America.
Here there is just a simpler standard of living but “luxuries” are frequently more than in America.