Sunday, October 10, 2010
Posted by D. Daniel Sokol
There was a short but powerful Wall Street Journal op-ed about the problem of concentrated interests that (badly) run Israel's economy. See here. The important point is "These conglomerates choke Israel's hapless consumers. Israeli citizens must also pay monopoly rents of between 20% and 30% on everything they consume, according to researchers at Israel's ministry of finance. This lack of competition has contributed to low per-capita productivity (about half that of the U.S.) and dismally low wages for Israeli workers."