Some things to note on Israel's economy
Reader comment on: Israel Risks Trouble
Submitted by Grayson Levy (Israel), Sep 4, 2011 17:13
The "unemployment" rate is very low but the "employment" (labour-force participation) rate is one of the lowest in the west. Huge numbers of people opt out of the labour force by choice. It's a narrow tax base. The one very bright spot is low youth unemployment - there are jobs available for reasonably qualified graduates. However raising taxes on labour and capital will surely bite into that.
Absolute GDP grew well recently but population growth is also high, so per capita GDP growth is not so impressive. In the last few weeks the Tel Aviv stock exchange has taken a terrible beating - not a good sign. Exports are down recently, and Turkey is threatening to cut trade ties now.
A bad time for a socialist revolution.
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