Paul Krugman exposes how Netanyahu used Iran to conceal Israel’s economic disaster


Paul Krugman, Image: RawStory
The real reason behind Israeli Prime Minister Benjamin Netanyahu’s recent anti-Iran speech to Congress had nothing to do with foreign policy, Paul Krugman opines in Monday’s column. Insulting the president is not the way to go about that.


By Janet Allon|Alternet/Raw Story

No, Netanyahu has a serious problem at home and polls suggest that he may well get the boot in Tuesday’s election. That problem might sound familiar—Israel has become almost as unequal as America, and there is widespread economic discontent in the country that once was built on the socialist ideals of the kibbutz syztem.

Economic happiness is not the usual mainstream story we hear about Israel. The country is a high-technology powerhouse and its economy has grown rapidly, barely affected by the worldwide recession starting in 2008. But the spoils of that growth have gone disproportionately to Israel’s own version of the one percent. According to Krugman, since the early 1990s,

Israel has experienced a dramatic widening of income disparities. Key measures of inequality have soared; Israel is now right up there with America as one of the most unequal societies in the advanced world. And Israel’s experience shows that this matters, that extreme inequality has a corrosive effect on social and political life.

Consider what has happened at either end of the spectrum — the growth in poverty, on one side, and extreme wealth, on the other.

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