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December 03, 1984 - Image 20

Resource type:
Text
Publication:
The Detroit Jewish News, 1984-12-03

Disclaimer: Computer generated plain text may have errors. Read more about this.

20

Friday, December 7, 1984

THE DETROIT JEWISH NEWS

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NEWS

Israel unemployment hits record

Jerusalem (JTA) — Unem-
ployment in Israel has reached a
record high of nearly 100,000 job-
less, about six percent of the work
force, according to figures re-
leased this week. It is the highest
rise since the economic slump of
the mid-1960s, just before the
Six-Day War.
Baruch Haklai, director gen-
eral of the Employment Service,
said the problem was especially
acute in the development towns
where the jobless rate is triple the
average for the country as a
whole.
Yisrael Kesser, secretary gen-
eral of Histadrut, blamed the
previous Likud-led government
for neglecting development towns
in order to invest large sums in
settlements in the administered
territories.
Prof. Ephraim Kleimann, a He-
brew University economist, said
fighting inflation by unemploy-
ment was "the easy way out." He
warned that large scale jobless-
ness would encourage emigration
which is contrary to the very rea-
son the State of Israel was
founded.
Kleimann proposed shrinking
the civil service while easing the
tax burden on employers so there
will be no need to fire workers.
Meanwhile, the government's
inability to introduce the drastic
spending cuts necessary to allevi-
ate the economic crisis has raised
concern among policy-makers
over what might occur when the
three month wage-price freeze
package expires in January.
The freeze, instituted last
month, was seen as a temporary
means of curbing inflation while
the government utilized the
"breathing spell" to hammer out
an economic policy of austerity
which virtually all economists
consider urgent.
But the measures taken to date
fall far short of the austerity goals
and were agreed to only after bit-
ter wrangling among the various
ministries over where the axe
would fall. The unity government

indeed, authorized a $1 billion
slash in the state budget when it
took office last September. But
Finance Minister Yitzhak Modai
has argued strenuously since then
that an additional $500 million
cut is necessary, at the very least.
Last week, an ad hoc committee
of four, headed by Modai, recom-
mended by additional $395 mil-
lion cut in the national budget.
Other members of the committee
are Economic Minister Gad
Yaacobi and Ministers - Without -
Portfolio Ezer Weizman and
Moshe Arens.

But they ran into trouble when
they brought their proposals be-
fore their colleagues at a stormy
five-hour special session of the
Cabinet last Friday. The outcome
was that the recommended _cut
was whittled down to $365 mil-
lion. The stiffest oppositiorpto the
proposed cuts come from the
ministries with the largest
budgets: defense, headed by Yit-
zhak Rabin, housing by David
Levy and education, by Yitzhak
Navon.
Another obstacle to spending
cuts is Histadrut's demands that
the Treasury honor existing wage
agreements and pay workers
their increases when due. Modai
offered the wage hikes in ex-
change for an agreement to raise
the prices of subsidized products
and services, thus reducing the
burden on the Treasury. But Kes-
sar flatly rejected the deal at a
lengthy meeting at Premier Shi-
mon Peres' residence.
Meanwhile, the Treasury has
been forced to inject huge
amounts of money into the
economy because it is unable to
raise the prices of subsidized
items.
The only positive - economic
news this week was the decision of
the Knesset's House Committee
to reduce the overnight hotel
allowance for Knesset members
who live outside Jerusalem but
must spend the night there to
attend morning sessions.

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Independent Network News
analyst David Schoenbrun had
some kind words for Golda Meir in
a recent Parade magazine article.
Schoenbrun, a former chief corre-
spondent for CBS News in Wash-
ington and Paris and the author of
seven books, described the late Is-
raeli prime minister as "the uni-
versal grandmother" and related
the following story about the
leader:
She came to Paris one day as
foreign minister, accompanying
Prime Minister David Ben Gur-
ion, to negotiate an arms accord
with President de Gaulle. The
rumor spread through Paris that
de Gaulle had asked Ben-Gurion
how embattled Israel could name
a woman to the vital post of
foreign minister. Ben-Gurion was
reported to have laughed and
commented: `Golda? A woman?
Why Golda Meir is the very best
man we've got.'
"I did not really believe the
story, but at a cocktail reception I

walked over to Golda and asked:
`Did you hear what Ben-Gurion is
supposed to have said about you?'
Golda smiled sweetly and sadly,
took a deep draft on her ever pre-
sent cigarette and replied: 'That
I'm the best man he's got? Yes, I
heard it.' Then she took another
puff and added: 'Men think that's
a compliment."'

,

Chasing dreams

New York — A discovery by a
doctor at Israel's Technion may
help eliminate some of the mys-
tery surrounding dreams.
While examining the brain of a
man who told Technion resear-
chers that he never dreams, the
surgeon found a shell fragment in
the stem of the man's brain. The
position of the shrapnel may serve
as an indication of the place where
dreams originate — a place which
has been unknown to scientists
thus far.

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