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36 Friday, October 5, 1984

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THE DETROIT JEWISH NEWS

♦
MAGIC
For All Occasions

MENTALISM

NEWS

Adult Entertainment
E.S.P. Predictions
Mental Telepathy

Specializing In
Children's Parties
HARVEY 544-4196 *DR. HARVEY ALLAN 544-4196

Likud infighting

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with a

Continued from Page 1

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0
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Formerly in Oak Park

BILL

MICHAEL

at the

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Detroit, Mich. 48202

YIZKOR

IN MEMORY OF THE DEPARTED MEMBERS
OF THE
GREATER DETROIT SCRAP TRADE ASSOCIATION
ALL OF THE FOLLOWING ARE HONORED
BY ITS MEMBERS, FOR THEY WERE THE
GLORY OF OUR COMMUNITY. THEY
CHEERED US BY THEIR TOIL AND SERVICE.
THEIR MEMORY IS LIKE A BENEDICTION
UPON THE WORK OF OUR HANDS. THEY IN-
SPIRED US TO SERVE INCREASINGLY FOR
THE BENEFIT AND FELLOWSHIP OF ALL
MEN.

ZICHRONAM LIVRACHA

EDWARD ALPERT
NORMAN ALTUS
DAVID ANBENDER
HARRY ANBENDER
BEN BAYLES
LEO BORDEN
HYMAN CHABEN
ALBERT COHEN
JAY EDER
SID EDER
HARRY FATERNICK
MAX FATERNICK
ALEX FRIEDMAN

PHILIP FOREMAN
LOUIS FOON
MORRIS LANDAU
ARTHUR FEALK
PHILIP P. FEALK
JACOB FISHMAN
JACK LEPLER
HENRY MILLER
JACK MILLER
LESTER MILLER
HARRY MURAV
JACK ROSENTHAL

DAVE SIEGAL
SAM SCHWARTZBERG
THEODORE SILVERMAN
JACK SIPHER
MORRIS SPECTOR
CLAUDE SUPERSTINE
HYMAN TEPLITSKY
JACK WASSERMAN
SAM WASSERMAN
MAX WASSERMAN
MAX WEINER
ABE WEINTRAUB
LOUIS WOLOK

to pressure from the Histadrut
and ignoring Likud and the
Ministerial Economic Com-
mittee." Modai, seeking to
avoid a confrontation with
Levy, took credit for securing
$920 million worth of budget
cuts over a very short period.
Liberal Party sources,
however, are accusing Levy of
trying to curry favor with
workers in preparation for the
next Histadrut elections and
positioning himself for a lead-
ership race brewing within
Likud.
Differences within the eco-
nomic hierarchy came to the
fore with the resignation of
Nissim Baruch, director-
general of the Finance Minis-
-try, and his prompt replace-
ment by Emmanuel Sharon,
the man Baruch himself had
replaced only last June.
Baruch's letter of resigna-
tion criticized the new unity
government for failure to take
speedy, decisive measures to
solve the country's worsening
economic crisis. He charged
that the measures agreed to so
far would only fuel inflation
and impose additional bur-
dens on the poor.
Sharon, 55, who headed the
Treasury in the final months
of Likud-led coalition gov-
ernment, had issued -a blast
against "election economics"
when he quit last June. He
planned to enter private busi-
ness but reportedly was urged
by Modai to return to the Fi-
nance Ministry. He, like
Baruch, are known to advo-
cate very tough economic
measures to prevent economic
collapse.
There is considerable specu-
lation over how these de-
velopments might affect
Peres' mission to Washington.
He leaves for the United
States Saturday
_
night and is
to meet with President Rea-
gan, Secretary of State George
Shultz and other top Adminis-
tration officials.
Peres is expected to ask the
Americans to increase eco-
nomic aid to Israel by $600
million a year in each of the
next five years, which would
raise it to $2 billion a year, a
total of $10 billion over five
years. It is reported, moreover,
that Peres will ask that the
entire aid package be in the
form of grants so that Israel
could use the greater portion
for purchases at home rather
than in the United States.
The government last week
imposed harsh new economic
measures aimed at absorbing
some $900 million from the
public sector as a means of
curbing inflation.

But the double-barreled ap-
proach — a one-time property
tax and cuts in subsidies for
fuel and certain basic com-
modities that sent prices soar-
ing — has come under fire
from some of the country's
leading economists.
The cut-back on subsidies
took effect immediately. The
tax will apply to private cars,
boats, apartments where the
owner is not the resident,
business premises and
securities. Tax collection
methods will be tightened and
loopholes closed, according to
Finance Minister Modai.

According to some
economists, however,
the measures will not
achieve their
objectives unless
matched by the $1
billion slash in
government
spending vowed by
the Cabinet .. .

According
to
some
economists, however, the
measures will not achieve
their objectives unless
matched by the $1 billion
slash in government spending
vowed by the Cabinet but ap-
parently not likely to mate-
rialize in this fiscal year.
Moreover, the cuts in price
supports have the immedicate
effect of further fuelineinfla-
tion. And they are selective.
Many basics still benefit from
full subsidies, making it more
difficult for the government to
meet its $1 billion savings
target.
The price of fuel went up by
30 percent overnight. The
prices of other government
controlled products rose by
18-55 percent. As a result,
economic experts say, infla-
tion now running at an annual
rate of over 400 percent is
likely to exceed 1,000 percent.
At the same time, the gov-
ernment is continuing to sup-
port the price of bread by a
subsidy of 134 percent; eggs by
105 percent; milk by 103 per-
cent; and frozen poultry by 97
percent. Even so, long lines
developed at supermarkets
and gasoline stations as the
public rushed to stock up on
food and fuel before the hikes
took effect.
But if the government is
prepared to tighten the pub-
lic's belt, it is having difficulty
with its own. A major stumbl-

ing block at the moment is the
Education Ministry's budget.
Modai and Education Minister
Yitzhak Navon agreed to
bring their differences before a
special ministerial committee,
headed by Peres, which would
have the final say.
The most serious issue is
whether or not to continue free
high school education. The
Education Ministry has pro-
posed raising social insurance
payments by 0.2 percent to
fund free high school educa-
tion or, alternatively, impose
an overall education tax.
As for the overall fiscal
budget, the various ministers
have been unable to agree so
far on a cut of more than $650
million, well short of the $1
billion goal. That cut,
moreover, will be spread over
an entire calendar year. The
savings realized in the present
fiscal year will amount to no
more than $300 million.
Senior economists advising
the government maintain that
even a $1 billion saving is not
enough to set the economy
straight. Prof. Michael Bruno
and Prof. Eitan Berglass ap-
peared before the Cabinet last
week to urge an $800 million
cut in government spending
and a $1.2 billion cut in sub-
sidies — a total of some $2 bil-
lion. They also recommended
that the government refrain
from imposing new taxes be-
cause of their inflationary ef-
fects.
But the government has ap-
parently disregarded their ad-
vice and has taken a different
tack. It has levied new taxes
and has shelved indefinitely a
wage-price-tax freeze which
labor and management ap-
peared only last week on the
verge of accepting.
. Until now, Israelis have
been living well. Cost-of-
living increments linked to
the rising price index have
been a cushion against infla-
tion. But this is fast being
eroded. The C.O.L. increment
due on September salaries,
paid Monday, was 13.2 per-
cent. It is estimated, however
that wages will decrease in
value by about ten percent in
the next few months because
of the sharp rise in the cost of
basics.
By American and West
European standards, Israeli
prices are a bargain. A loaf of
ordinary bread costs ten cents.
A liter of milk is 30 cents. An
egg costs seven cents. A kilo of
meat (2.2 pounds) sells for
$5.25 and a gallon of premium
gasoline is $2.50. But the av-
erage Israeli family must now
spend $500 a month to cover