Israel’s frozen economy

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  • December 30, 2021 2:30 am at 2:30 am #2046404
    Romain
    Participant

    I was listening to an economist speak on I 24 news explaining Israel’s economy.and he said that isreili median salaries havent actually
    Changed since 1995. median salaries is what half or more of the population earn .average salary is about what 20 percent of
    The population earn because of inequality.the average salary
    Has actually increased by 10 percent since 1995 .but the exchange rate fools people because the same number can be a different number of dollars
    Also although the median salary hasn’t changed .the cost of living
    Has jumped by 280 percent .

    December 30, 2021 3:56 am at 3:56 am #2046420
    Romain
    Participant

    LET ME REWRITE THAT.
    According to an economist on I 24 news
    Israel’s median wage is the same as it was in 1994.
    The median wage is what half of the population earn.
    And in the same time the cost of living has jumped 280 percent
    Since 1995.
    The average wage which is about what 20 percent of Israel’s
    Population earn has increased by 20 percent .
    According to him israel is the only country who had a zero increase
    In the median salary and such a slow increase in the average salary and he said the crisis is going to get worse because he
    Predicts no increase in the median salary and cost of living is
    Expected to increase by 10 percent this year

    Sorry about all the spelling mistakes it’s because I have big fingers so when I press one button I accidently press on the other

    December 30, 2021 8:35 am at 8:35 am #2046449
    ujm
    Participant

    Romain, what you’re describing is called “fat fingers”.

    December 30, 2021 8:36 am at 8:36 am #2046455
    jdb
    Participant

    Factually, not sure that’s accurate. High tech has dramatically raised the average salary.

    December 30, 2021 9:28 am at 9:28 am #2046487
    Romain
    Participant

    The average salary isn’t relevant only 20 percent of israeilis
    Earn the average wage.the median wage is the relevant
    One which is 6300 shekels (1800)

    December 30, 2021 4:53 pm at 4:53 pm #2046699
    Always_Ask_Questions
    Participant

    Romain, you are right on the difference between average and median wages. Average wage is going up doe to the top earners, and Israel’s better part of economy, based on hightech, is doing very well last 20-30 years. At the same time, the lower part, consisting of traditional industries, manual work, non-working population are not doing as well. It is a reflection of overall tendencies in the world: technology enables better productivity. A software developer is more productive than a traditional engineer: he creates a program that can be used million of times instead of designing one house. At the same time, a farmer with a high tech tractor still needs to plow the whole field…

    There are two ways to change the situation:
    1) demand that richer people share their productivity with others. for a small country, like Israel, it will lead to more people leaving to not be over-taxed in other places
    2) train more people to do productive work using modern technology so that they can earn accordingly

    December 30, 2021 4:53 pm at 4:53 pm #2046702
    Always_Ask_Questions
    Participant

    Romain, there is a fallacy in the numbers you bring:
    you compare median salary with (average) cost of living. Average cost of living closely tracks AVERAGE salary: people spend as much as they earn! So, your economist is simply saying that median person can not live like a rich person!

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