New Economic Problems Are Facing Israel
By ELIAHU SALPETER
(Copyright, 1966, JTA, Inc.)
JERUSALEM—The end of last
year was rather unpleasant for
most Israelis. Day after day, the
papers published reports of price
increases due with the beginning
of the new year. First came the
report that the private health in-
surance companies would hike their
dues by about 20 per cent. This
affects at least 150,000 families
whose expenses will increase, on
the average, by about 60 pounds
per year. Next came the announce_
ment that secondary schools would
also effect a 20 per cent raise in
tuition fees. Again, this concerns
about 100,000 families whose chil-
dren are not substantially coy-
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Then came the news that news-
papers will cost 20 agorot (about
7 cents) on weekdays, instead of
15 agorot. Also announced was an
impending increase in automobile
insurance (about 8 per cent) and
in the price of milk products. The
bus cooperatives which provide
urban and interurban transporta-
tion to all Israelis who don't travel
by car or use the rather limited
train services, have also applied
to the Minister of Transport for
an approval of an increase in
fares.
According to those in the
know, this is only the beginning
and, in the early months of
1966, Israel will witness a gen-
eral wave of price increases
reminiscent of the inflationary
trend which hit this country
before the devaluation of the
pound in 1962. There is, how-
ever, an interesting and signifi-
cant difference between the
present inflation and the pre-
vious one. The earlier one was
primarily attributable to a con-
stant increase of the money in
circulation, i.e. its origin was
primarily fiscal and financial.
This time the source is not a
growing volume of goods, but
constantly expanding wage de-
mands adding to production
costs, which of course must
result in higher prices for com-
modities and services.
At the moment, Israel still en-
joys full employment and conse-
quently demands for wage in-
creases are generally met, at least
in part. However, there are already
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Group of 100 'Veterans' Form Habonim Alumni
NEW YORK—A group of 100 an engineer; and Ben Cohen, a
evident the first signs that this people throughout the country who Brooklyn businessman, said the
vicious circle is reaching a break- were members of Habonim, the purpose of the group is to
ing point. The warning signal Labor Zionist youth movement in take an interest in the problems
of Zionist youth work in this
came from the building industry
which in Israel is a barometer of their youth have established a country.
In the 30 years of its existence
economic forecasting not unlike Habonim Association which has
the automobile industry in the set itself a target of reaching a Habonim has "graduated" an es-
United States. Thousands — and membership of 50,000 within a timated 40,000 young people. Well
over a thousand of these now live
according to some experts, tens year.
Spokesman for the new group, in Israel.
of thousands — of apartments,
Habonim alumni interested
which have been completed in re- Steven Jay, professor of music
cent months, stand empty because at N.Y.U.; Michel Herzog, profes- joining are asked to contact the
the builders failed to find buyers. sor of Yiddish at Columbia; Sam- Habonim Alumni Association, 200
This affects both private builders uel Cohen, attorney; Jack Gusman, Park Avenue South, New York.
as well as large construction com-
panies, and even the housing de-
partment of the Ministry of Labor
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Another area that reportedly
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begins to feel the pinch is the
daily,
per
person,
dbl.
occ.
automobile business, particularly
22 of 157 rms.
the car imports. Dealers find it
Jan. 17-Mar. 20
increasingly difficult to sell their
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wares, with the higher duties on
(3 meals daily) add $4;
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imported cars, and an improve-
to 38th ST., MIAMI BEACH
children 10 or under, add $2
ment in the quality of locally
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The rate than the imported
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The business community is
trying to combat these develop-
ments by abandoning slowly the
time-honored custom of pegging
mortgages and liens to the cost
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almost as much as when they
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mortgages" at the official maxi-
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mum interest rate of 11 per cent
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plus the legally permissible
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But while people seem to have
less money to buy cars or houses,
they are still not very careful
with the money when it comes to
smaller expenditures. Beauty par-
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fancy restaurants are opening up
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IF YOU
young wage earners frequently
spend as much as 5 per cent to
10 per cent of their monthly earn-
ings in an evening in a nightclub.
It is estimated that the price
increases of the coming months
...
••••
• • •• • VI
will, to a large extent if not com-
pletely, eat up whatever increases
in real wages were obtained by
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i
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can determine if you have to file
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- Every citizen of the United
States, and every alien resident
of the United States who is under
65 years of age and who had gross
income of $600 or more must file
a tax return. If you are 65 or
over on Dec. 31, you must
file an income tax return if your
gross income was $1,200 or more
during the taxable year.
Minor children are subject to
the same filing requirements as
all other Federal taxpayers. A per-
son under 21 years of age must
file an income tax return if his
grass income for the year amount-
ed to $600 or more.
If you had less than $600 of
gross income, and income tax was
withheld from your wages, you
should file a return to get a re-
fund of the tax withheld.
If in doubt about the filing
requirement, telephone your local
Internal Revenue Service Office.
THE DETROIT JEWISH NEWS
30—Friday, January 14, 1966
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For information and reservations, see
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_