Saturday, August 9, 2014

Which Nation Belongs in the Land of Israel?

“That all men are by nature equally free and independent and have certain inherent rights, of which, when they enter into a state of society, they cannot by any compact deprive or divest their posterity; namely, the enjoyment of life and liberty, with the means of acquiring and possessing property….” Virginia Bill of Rights 1776

During World War I, the Arab states had fought alongside of the Western Allies against the Central Powers, i.e., Germany, Austria-Hungary, Bulgaria, and especially against the Ottoman Empire. In return for their help, the Allies had promised the Arabs independence. Instead, at the Paris peace conference after the war, the Allies carved up the Arab lands formerly controlled by the Ottomans and gave it over to the administration of the French and British. Present day Iraq, Trans-Jordan, and Palestine/Israel were given to the British. The areas of present day Syria and Lebanon were given to the French. This outraged the Arabs.

When the British took over Palestine, their Foreign Secretary, Arthur Balfour issued the famous Balfour Declaration which specified that Palestine should be set up to house Jews and thereby win political support of European Jews. The Declaration stated, “Nothing shall be done which may prejudice the civil and religious rights of existing not-Jewish communities in Palestine.” Those “non-Jewish communities” were Arabs. The Declaration aggravated conflict between Arabs and Jewish nationalists. 

Since Roman times, Jews had dreamed of returning to Palestine; and, indeed, a small Jewish population had stayed in the area for all those hundreds of years, even after World War I. As anti-Semitism spread in Germany and Eastern Europe after that war, increasing numbers of Jews immigrated into the land of Palestine, bringing with them money and technical expertise. They bought farmland and established businesses and industries. All of this activity offended the much poorer Arab residents, because the Arabs were pushed out of their homes and jobs.

In 1948, Britain and the United States agreed that the land of Israel should be established as a Jewish state; Israel was designated an independent nation. This action stimulated mass migration of Jews from Arab states, Europe, and the United States. It also escalated the conflict between the Israeli Jews and their Arab neighbors. Since then, Israel has been continuously mobilized for war; and it has actually been involved in defending itself against aggressive Arab neighbors in seven shooting wars.

Despite all the adversity facing the nation of Israel, the country has prospered. The Israeli culture has produced a vibrant literature, pace-setting arts and six of the world's leading universities. A huge program of reforestation has been accomplished and is still developing. The philosophy and religion of Zionism in Israel has reinstituted the ancient language of Hebrew. The family values that Zionism has fostered have produced the fastest natural population growth rate in the modernized world and history's largest Jewish community. The average secular couple in Israel has at least three children, each a reaffirmation of confidence in Zionism's future. The population is annually rated among the happiest, healthiest and most educated in the world. Life expectancy in Israel, reflecting its superb universal health-care system, significantly exceeds America's and that of most European countries. Unemployment is low, the economy robust. A global leader in innovation, Israel is home to research and development centers of some 300 high-tech companies, including Apple, Intel and Motorola. The beaches are teeming, the rock music is awesome, and the food is of excellent quality.

Jews and Christians recognize a centuries’ long principle of Jewish hegemony over the land of Israel. It is attested to in the 12th Chapter of Genesis and in subsequent chapters. Abraham, the father of the Jews was promised this land by God, himself. The nation is named after one of the Patriarchs (Jacob). Jews strongly identify with this 4,000-year-long bond between themselves and their historic homeland. They have sustained this belief throughout 20 centuries of exile.

We return to our previous question, i.e., to whom does this land belong? For my part, I think Israel belongs to the Jews. It has belonged to the Jews through many centuries of exile. They have returned and converted the land into a prospering democratic republic, honoring the rule of law, property rights, and the dignity of individuals. All this accomplishment in contrast to the outright poverty and squalor of the Palestinian culture across the Jordan River.

(Some of this blog post was gleaned from an op-ed in the Wall Street Journal by Michael B. Oren, a former ambassador to the United States, written 1 August 2014.)

Sunday, August 3, 2014

85 People Own Half of the World’s Wealth!


"Princes or lords may flourish, or may fade;
A breath can make them, as a breath has made;
But a bold peasantry, their country's pride,
When once destroy'd, can never be supplied."
             Oliver Goldsmith 1728-1774 The Deserted Village

There has been great concern among lots of Americans that the government’s present course of redistribution of wealth, intended to reduce inequality in the country, will harm our nation’s financial status and growth direction. The fear is that taking money away from the rich will impair their ability to invest money and will impede real job creation. To a considerable extent, this fear has some truth to it.

On the one hand, it is common knowledge that inequality in world wealth is at an all-time high. There is also a fear that inequality is bad for our society.

Nicholas Kristof writing in the New York Times on 7/23/14 (An Idiot’s Guide to Inequality) http://nyti.ms/1rMPSuh (control+click) reports that the top 1% of people in the income distribution of our country now own more wealth than the bottom 90 percent. As a result of this maldistribution of wealth, it was found that in 2010, 93% of the increased wealth created in the United States went to the top 1% of our population who live in the upper economic levels of society.

 Oxfam estimates that 85 world citizens own as much as the bottom half of the world’s population! (Oxfam is an international confederation of 17 organizations working in approximately 94 countries worldwide to find solutions to poverty.)

There is a tentative agreement in the literature written by economists about growth that inequality can undermine progress in health and education, causing investment-reducing political and economic instability, and undercut the social consensus required to adjust in the face of major shocks, and thus that it tends to reduce the pace and durability of growth. Markedly unequal distribution of wealth also causes the wealthy class to seek rents instead of actually contributing to real growth (“Rent-seeking” is the practice of using wealth to create more wealth, without actually contributing to the stock of goods and services in the country.) This practice diminishes economic growth in the country.
 
It has long been known that lower levels of economic inequality are correlated with faster and more durable growth. So…governmental gurus who run the Treasury Department and the Federal Reserve always seek ways to redistribute wealth through fiscal and monetary means.

Modern-day politicians with a “progressive” viewpoint think that redistributing wealth by increasing taxes and government spending on roads, dams, and other infrastructure will help the underclass by giving them more money and, thus, stimulate growth. The problem with this idea is that the jobs created by government spending on such things do not last; and, in the end, they do not help with national economic growth. Only jobs created in the private sector will give long-term economic growth.

Writers at the International Monetary Fund point out that inequality may impede growth at least in part because it calls forth efforts to redistribute through the fiscal system, efforts that themselves may undermine growth. In such a situation, even if inequality is bad for growth, taxes and transfers may be precisely the wrong remedy. http://bit.ly/1dzoFjl (control+click)

So much for the bad news. What is the answer to the inequality/slow-growth problem? The answer to this is very hard to say; and economists have wrestled with this question for a long time. It is the considered opinion of several that the answer does not lie in more governmental redistribution through the monetary and fiscal system. The answer probably lies in efforts to equalize opportunity rather than income.

Rather than dumping money into more roads and dams, I believe that the United States would do better to put more money into equalizing educational opportunities for our people. It is a fact that in America, the sharper edge of public funding for education still goes to the rich rather than to the poor. If our people would have less inequality in financial affairs, they must have less inequality in opportunity to advance themselves. http://nyti.ms/1nDoyvC  (control+click) That means they must be able to compete better as a result of better education.