"As a traditional Democrat, I have always believed that freedom, fairness and wealth, basic to a modern democracy, required an essentially redistributionist philosophy of wealth, that a fairly steeply graduated income tax was required as a matter of fairness and that lower deficits would guarantee adequate growth and a fair distribution of wealth. The experience of the last two decades, with the advent of the global economy, has very much shaken that view. Fairness does not require the redistribution of wealth; it requires the creation of wealth. . ."
Mr. Rohatyn was undaunted in facing up to the fundamental truth that the steps required to raise everyone’s standard of living in absolute terms are not likely to reduce the present degree of income and wealth differentials. In fact, he acknowledged that a continued striving for economic leveling will defeat efforts to improve the plight of the poor.
The Jubilee Plan for real independence begins, therefore, with a critical examination of current policies to rout out the forces that undermine our productivity and profitability. It proceeds from a recognition that the Israeli people have come to be dependent on their government much in the same way their government is dependent on foreign governments.
The objective of the Jubilee Plan is to set forth a long-term economic strategy to overcome this dual dependency that is eroding the very foundation of the nation. This report goes on to suggest specific libertarian, growth-sustaining remedies to the problems exposed and it seeks to do this on every economic front. For example:
Taxes: The current tax structure is stunting the economy and discouraging individuals from working, saving, and investing. It should be replaced by a 26% flat tax on all income.
Privatization: State-owned lands and enterprises are sitting fruitless in government's possession. They could be put to far more productive use in the hands of private citizens and businesses. They should be sold back to the people or privatized by other means. Monopolies create a market environment in which higher prices are attached to low-quality goods and prevent Israeli's from being able to compete in the global marketplace. State subsidizing and protection of monopolies should be put to an end.
Transportation: Public transport is an invaluable mechanism for increasing economic opportunity. This advantage should not be confined to only a few companies but opened up, so that prices can fall while service improves. And taxes should not prevent the average Israeli from owning a car.
Industry and investment: Subsidies benefiting one well-connected company over another, smaller family-owned or privately-operated businesses, ultimately do not serve the best interest of the nation or its trading partners. Foreign and local investors should be free to invest and profit in an environment unencumbered by government preferences.
Pensions: Government's unprofitable funding of bankrupt funds should end. If Israelis are given the freedom and responsibility to choose a savings plan best suited for them, then those institutions with the best record of actuarial solvency will adequately serve their needs without help from the government.
Health care: The national health law, which has never actually been enacted in full accordance with the law, should be repealed and Israelis given the freedom to choose the health care they want.
Housing and land: Government control of the land business distorts pricing and unnecessarily taxes landowners. People should be allowed to decide where they want to live at reasonable prices.
Foreign aid: While it has helped in the past, foreign aid now feeds the overgrown bureaucracy and perpetuates a cycle of dependency. It should be cut back with the nation’s solemn commitment to end the receipt of all foreign aid within two years, specifically on July 4, 1998.
Education: Education is an economic and spiritual asset to the nation. Educational systems which fail to provide a quality education are not. Israel's collapsing educational system should be privatized to allow schools, teachers, and students to reach their full potential (see separate Jubilee Education plan).
In the end, we cannot maintain our independence if it is anchored to an economic foundation that makes it impossible for the people and the government to be self-reliant and self-ruling. The time has come for Israelis to make a fundamental choice: will we perpetuate the cycle of economic diminishment and dependency or will we move boldly and resolutely toward our long-promised inheritance and become a truly free and independent people?
|
|
