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Israel's Tech Boom Masks Growing Economic Inequality, Experts Say


Israel’s Tech Boom Masks Growing Economic Inequality, Experts Say
Maya Margit
Record-breaking high-tech industry gains are not translating into wider economic benefits for majority of Israelis
Israel’s high-tech boom is masking a worrisome economic split between those working in the sector and those working in other industries, experts warn.
Unlike other sectors, Israel’s high-tech arena has not slowed down due to the pandemic. In fact, the COVID-19 crisis has led to some massive gains for tech firms in the start-up nation, with several raising record-breaking amounts from investors in recent months.
As a result, tens of thousands of tech workers have gone on to become millionaires, according to the Globes English news website. Moreover, Israel has for the first time broken into the top 20 global economies in gross domestic product per capita, coming in at roughly $43,000 for the past year, data from the International Monetary Fund show. ....

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Pandemic will worsen already high poverty, inequality in Israel, report says


A beggar on Tel Aviv promenade (Gili Yaari / Flash 90).
The economic impact of the coronavirus pandemic will be felt for a long time and is likely to increase poverty levels and worsen inequality, two facets of Israeli society that were “exceptionally high” even before the crisis hit, a report by the Taub Center for Social Policy said.
The incidence of poverty is estimated to have increased by about 8 to 14 percent and inequality by about 1.5 to 4 percent in 2020 as a result of the pandemic, wrote the authors of The State of the Nation 2020 report. The main victims of the crisis were working families who saw their jobs disappear or their salaries cut, single-parent families, and young families. ....

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