Monday, May 08, 2006

Conservative Businessman Brings in Tax Revenues - Will the Socialist Politicians Squander It?

Until yesterday I had never heard of the Wertheimer family, or Warren Buffet for that matter. I glance at the business headlines, but I don't follow the financial news like I do the political situation.

So most of my information about the big deal that was announced yesterday and the background came from the media - the web articles and an interview I heard with Stef Wertheimer last evening.

The news that Warren Buffet's first aquisition outside of the United States was in Israel was met with unqualified glee, but there was also a thinly veiled feeling of astonishment at which company he bought. A metalworks company and not a hi-tech one? One located in the Galilee and not in the Israeli equivalent of Silicon Valley - the Tel-Aviv coastal region? The media people were then quick to say that Buffet will be coming to Israel in September and "will probably buy more companies". Who are they consoling with this information?

The media repeated the information that Stef Wertheimer is now the richest man in Israel - to the point where I was embarrassed. He was interviewed on television (which was broadcast on IDF radio) and was asked more than once how it felt to be the richest man in Israel, and he brushed this off and spoke about what is his real dream - building up the Galilee and turning it into an extremely desirable place to live. He spoke about investing the profits from this deal into attracting more businesses to the Galilee, and how Buffet bought his company because of the work ethic of the employees and that he would definitely not sell out and take the business to other locations for cheaper workers.

To my American ears it sounded as if Stef Wertheimer is the epitome of a conservative businessman - building companies and using them to help people by providing jobs and better education. When I went on to the web and read some articles, this impression proved correct. Bradley Burston in Haaretz has an excellent analysis here, and the Jerusalem Post also has background here.

The family has stated clearly that the profits from the sale will be put back into businesses in the Galilee and educational philanthropy (training people for higher paying jobs), but a big question is what the government will do with the windfall of tax revenues.

When Bibi Netanyahu was finance minister there was a clear policy laid out. Government spending was cut, income taxes were cut, and so was the VAT (value added tax). Unemployment also gradually fell.

There is no clear cut policy now, but it is clear from the election results that the Israeli people want more money to be given to the weaker portions of Israeli society. The question is how to do that - and Olmert has been closed-mouthed, mainly because he doesn't want to favor one group over the other. Now he and the new finance minister will have to make some sort of decision - and the expectations have just risen.

Will they renounce the price hike on subsidized bread? Will they give more money to the pensioners? Will they advance the rise in the minimum wage? Will they increase child allowances?

Or will they follow a more conservative policy, like Netanyahu and decrease the VAT (which he lowered from 18% to 16.5% - and you Americans complain about YOUR sales tax!!). They could also just use the money to lower the government's overall debt.

It will be interesting to see which way the government goes on this.

10 Comments:

Blogger Rafi G said...

waiting to see....

11:16 AM, May 08, 2006  
Blogger westbankmama said...

rafi - I saw your post on this subject too. Good job.

2:18 PM, May 10, 2006  
Anonymous Real Israeli said...

Never heard of the Wertheimers? Call yourself Israeli? They have been developing the Galilee for yonks, working at Tefen while the settlers squandered the nation's purse.
Oh and by the way, under Bibiyahoo, unemployment went up and up and his credibility went down and down.

8:48 PM, May 10, 2006  
Blogger westbankmama said...

real israeli - I guess I've made it as a blogger because yours is the first nasty comment I've received (no prizes awarded, though).

As for our squandering the nation's purse - it is true that we receive a modest income tax break for living where we do - but so do the people who live in Beit Shemesh - including the Anglos in the homes that are worth three times what mine is. Second, we received a small grant from the government to move here, but the bulk of the price of my house is covered by my mortgage which I pay every month. Third, the fact that we live here has provided a huge number of jobs: the electric company, the phone company, the construction companies that built the houses and paved the roads, the doctors and nurses who work in the health clinics, the college in Ariel and the educational institutions that hire everyone from metaplot to professors. All of these people work and pay taxes to the government from their wages.

Next, the unemployment rate has gone down from a high of 10% to less than 9%. Where are you getting your statistics?

8:11 AM, May 11, 2006  
Anonymous Anonymous said...

warhammer gold warhammer money warhammer accounts tibia money tibia gold tibia item runescape accounts buy runescape accounts runescape money runescape gold runescape gp runescape power leveling runescape powerleveling cheap rs2 powerleveling runescape equipment buy rs equipment runescape runes cheap rs2 runes runescape logs cheap rs2 logs runescape items buy runescape items runescape quest point rs2 quest point cheap runescape questpoint runescape gold runescape items runescape power leveling runescape money runescape gold buy runescape gold buy runescape money runescape items runescape accounts runescape gp runescape accounts runescape money runescape power leveling runescape powerleveling tibia gold dofus kamas buy dofus kamas wow power leveling wow powerleveling runescape questpoint rs2 questpoint Warcraft PowerLeveling Warcraft Power Leveling World of Warcraft PowerLeveling World of Warcraft Power Leveling Hellgate money Hellgate gold buy runescape logs buy rs2 items cheap runescape items Hellgate London gold Guild Wars Gold buy Guild Wars Gold runescape items rs2 accounts cheap rs2 equipments lotro gold buy lotro gold buy runescape money buy runescape gold buy runescape runes lotro gold buy lotro gold runescape money runescape gold cheap rs2 powerleveling eve isk eve online isk buy runescape power leveling rs2 power leveling tibia gold tibia item runescape accounts Fiesta Silver Fiesta Gold Scions of Fate Gold Hellgate Palladium Hellgate London Palladium SOF Gold Age Of Conan Gold AOC Gold ArchLord gold tibia money tibia gold runescape accounts runescape gold cheap rs2 powerleveling buy ArchLord gold DDO Plat Dungeons and Dragons Online Plat

7:48 AM, October 26, 2008  
Blogger cvxv said...

看房子,買房子,建商自售,自售,台北新成屋,台北豪宅,新成屋,豪宅,美髮儀器,美髮,儀器,髮型,EMBA,MBA,學位,EMBA,專業認證,認證課程,博士學位,DBA,PHD,在職進修,碩士學位,推廣教育,DBA,進修課程,碩士學位,網路廣告,關鍵字廣告,關鍵字,課程介紹,學分班,文憑,牛樟芝,段木,牛樟菇,日式料理, 台北居酒屋,日本料理,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,台北結婚,場地,住宿,訂房,HOTEL,飯店,造型系列,學位,SEO,婚宴,捷運,學區,美髮,儀器,髮型,看房子,買房子,建商自售,自售,房子,捷運,學區,台北新成屋,台北豪宅,新成屋,豪宅,學位,碩士學位,進修,在職進修, 課程,教育,學位,證照,mba,文憑,學分班,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北結婚,場地,結婚,場地,推車飲茶,港式點心,尾牙春酒,台北結婚,婚宴場地,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北結婚,場地,居酒屋,燒烤,美髮,儀器,髮型,美髮,儀器,髮型,美髮,儀器,髮型,美髮,儀器,髮型,小套房,小套房,進修,在職進修,留學,證照,MBA,EMBA,留學,MBA,EMBA,留學,進修,在職進修,牛樟芝,段木,牛樟菇,關鍵字排名,網路行銷,PMP,在職專班,研究所在職專班,碩士在職專班,PMP,證照,在職專班,研究所在職專班,碩士在職專班,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,EMBA,MBA,PMP,在職進修,專案管理,出國留學,EMBA,MBA,PMP,在職進修,專案管理,出國留學,EMBA,MBA,PMP,在職進修,專案管理,出國留學,婚宴,婚宴,婚宴,婚宴,漢高資訊,漢高資訊,比利時,比利時聯合商學院,宜蘭民宿,台東民宿,澎湖民宿,墾丁民宿,花蓮民宿,SEO,找工作,汽車旅館,阿里山,日月潭,阿里山民宿,東森購物,momo購物台,pc home購物,購物漢高資訊,漢高資訊,在職進修,漢高資訊,在職進修,民宿,民宿,整形,造型,室內設計,室內設計,漢高資訊,在職進修,漢高資訊,在職進修,民宿,美容,室內設計,在職進修,羅志祥,周杰倫,五月天,民宿,民宿,整形,整形,室內設計,室內設計,比利時聯合商學院,在職進修,比利時聯合商學院,在職進修,漢高資訊,找工作,找工作,找工作,找工作,找工作,蔡依林,林志玲

9:27 AM, April 15, 2009  
Blogger ninest123 Ninest said...

ninest123 09.15
burberry outlet online, prada handbags, michael kors outlet, oakley sunglasses, christian louboutin outlet, louis vuitton, ray ban sunglasses, replica watches, louboutin shoes, longchamp outlet, polo ralph lauren outlet, louis vuitton, longchamp outlet, nike air max, ugg boots, louboutin, jordan shoes, ugg boots, michael kors outlet, ugg boots, longchamp, nike free, louis vuitton outlet, michael kors outlet, ugg boots, ray ban sunglasses, michael kors outlet, michael kors, gucci outlet, tory burch outlet, oakley sunglasses, louboutin outlet, louis vuitton outlet, michael kors outlet, uggs on sale, louis vuitton, polo ralph lauren outlet, prada outlet, burberry, tiffany jewelry, replica watches, nike outlet, nike air max, tiffany and co, oakley sunglasses

6:11 AM, September 15, 2015  
Blogger ninest123 Ninest said...

north face, tn pas cher, lululemon, michael kors, sac guess, burberry, nike blazer, coach factory outlet, hollister, true religion jeans, vanessa bruno, true religion jeans, hollister pas cher, kate spade handbags, nike roshe run, lacoste pas cher, true religion jeans, ray ban uk, coach purses, ray ban pas cher, air jordan pas cher, air max, michael kors, longchamp pas cher, michael kors, chanel handbags, ralph lauren pas cher, michael kors, hogan, new balance pas cher, hermes, nike free, nike air max, sac longchamp, converse pas cher, coach outlet, timberland, north face, oakley pas cher, kate spade outlet, coach outlet, vans pas cher, true religion outlet, louboutin pas cher, air force

6:14 AM, September 15, 2015  
Blogger ninest123 Ninest said...

baseball bats, asics running shoes, mac cosmetics, north face outlet, babyliss, nike trainers, hollister, jimmy choo shoes, celine handbags, soccer jerseys, nike huarache, nike roshe, beats by dre, bottega veneta, birkin bag, ralph lauren uk, lululemon, nike air max, vans shoes, abercrombie and fitch, giuseppe zanotti, reebok shoes, chi flat iron, mcm handbags, nike free run uk, abercrombie and fitch, ghd, nfl jerseys, ferragamo shoes, wedding dresses, insanity workout, longchamp, hollister, nike air max, north face outlet, nike roshe, p90x workout, new balance, mulberry, instyler, herve leger, valentino shoes, nike air max, mont blanc, soccer shoes

6:17 AM, September 15, 2015  
Blogger ninest123 Ninest said...

louboutin, replica watches, iphone 6 cases, juicy couture outlet, louis vuitton, juicy couture outlet, doke gabbana outlet, ray ban, ugg,uggs,uggs canada, ugg,ugg australia,ugg italia, michael kors outlet online, gucci, lancel, supra shoes, pandora jewelry, montre pas cher, oakley, wedding dresses, karen millen, links of london, swarovski crystal, hollister, louis vuitton, nike air max, bottes ugg, converse outlet, pandora jewelry, michael kors handbags, timberland boots, michael kors outlet, toms shoes, vans, louis vuitton, louis vuitton, converse, hollister, sac louis vuitton pas cher, ugg pas cher, coach outlet, marc jacobs, ugg boots uk, pandora charms, thomas sabo, pandora charms, ralph lauren, swarovski
ninest123 09.15

6:21 AM, September 15, 2015  

Post a Comment

Links to this post:

Create a Link

<< Home