"It is impossible to talk about economics and social justice without someone creating added value in the economy - and it is the private sector that creates it," said Prime Minister Benjamin Netanyahu at the "Globes" Israel Business Conference today in a comment about the social protest.
"People think that economics runs itself," said Netanyahu. "Growth is mostly achieved by the private sector. Those who forget this will find themselves in East Germany or North Korea, or with five-year plans that make just distribution and end up with terrible poverty. In the 20th century, there was an experiment between the free and the unfree economies, and we learned a lesson - free economies meet society's needs."
Netanyahu attacked his critics and the people calling for social justice, saying that they "only talk about how to distribute the pie, but not how to make it bigger. If you're only engaged in distribution, you'll very quickly be left only with crumbs. I tell you that I am dealing with the question how to make the pie bigger. By the way, when the pie gets bigger and the distribution gets better."
Netanyahu said that Israel's problem today was the slowdown in the global economy. "Our pie grows when the world grows. We're an export-oriented economy and our key markets are not about to grow in the near future. Our ability to continue to grow is in doubt, unless we do some new things. What are these new things? First of all, to reach new markets. The finance minister is leaving for India today with my blessing. President Peres recently visited Vietnam with my blessing. We're talking about trips to China with my consent and at my initiative. I tell any minister who wants to go to China, 'Go'. I tell you too, 'Go to China'. Why? Because it's a huge market and if we get a small piece of it we'll achieve the growth that is so critical to our needs."
Netanyahu repeatedly mentioned the government's investment in infrastructures nationwide, noting, among other things, the building of a medical school in Safed ("this is a great revolution") and the move of IDF bases to the Negev, which he called "two very strong anchors."
Netanyahu reiterated the principle of controlling expenses and not increasing the deficit, in complete contrast to demands by Minister of Defense Ehud Barak and the social protest leaders, headed by Dafni Leef. In a signal to Barak, he said, "The defense establishment has needs, but it must streamline, and that is partly related to transparency. We need greater transparency."
Netanyahu thus backed Minister of Finance Yuval Steinitz, and he added, "We will make a decision in a few weeks. I say no to raising spending in dealing and yes to defense and Trajtenberg, and it's possible to do this."
Netanyahu cited the example of the fence along the Egyptian border, which is aimed at preventing the entry of illegal migrants. The fence lacked a budget, as did the construction of holding facilities. "This package cost NIS 630 million. We are a responsible government - if you give, you must take from somewhere else. You cannot distribute money and say to hell with the bill. So I told the cabinet that there was a national need, but no money. If we want NIS 630 million, we have to make an across-the-board cut. The paramount principle is to control the budget, and we did it. We'll complete this fence in less than a year.
"Our real power lies in the private sector, in entrepreneurship. From paperboys to high-tech businessmen, and by the way a paperboy can one day grow up to manage a high tech company. After all, I started as a dishwasher in the US and became prime minister."
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2011
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