Israeli failure to fight Corona: on the brink of economic shock

The leaders of the Israeli enemy can no longer jump on a reality that has become well known in the Israeli arena, which is that the failure of the government to deal with the spread of the Coronavirus is no longer a health problem with enormous economic repercussions, but rather it is becoming a strategic failure that Security Minister Benny Gantz compared, and many experts accepted, because Israel did not prepare for the “October War” of 1973. It seems that this is due to a lack of understanding of the indicators of this threat and its size, and in light of this, Israel was not prepared to face it, although it could have done so for what it enjoys. Potential. After government measures failed to stop “Corona”, shocking official reports on the upward trajectory of the injured and deceased were forced into a broad economic shutdown, despite experts warning of the tremendous effects on the economy, including that the unemployment rate will reach an unprecedented level by the end of this year and will worsen Recession towards the worst case they feared. There was also a warning about an increase in the public debt index, after Israel made efforts in a decade to reduce it.

In this atmosphere, Gantz felt, during the memorial service for those killed in the “Yom Kippur War” on Mount Herzl, that “we must frankly admit (that at this time) we were also caught off guard. We depleted our healthcare system for years. . We did not respond to Corona correctly. This time also the price that we have paid and pay in a person’s life is very high. ”This indicates that political and security institutions could not ignore official reports that warned of an upward trajectory in the proportion of wounded and dead, especially after the release of a report issued by the Corona Anti-Corona Information Center and the Israel Military Intelligence Division (AMAN), that “The number of new patients per day, on average, in Israel, it is still the highest in the world in relation to population ”, and that“ for the first time, Israel has surpassed the United States in the number of deaths per day by Corona relative to population.
According to the same report, the death rate from corona in the enemy entity was approximately 3.7 per million people, while in the United States this rate is 2.25 cases per million (according to the European Center for the Control of Diseases), and in several European countries the rate is lower. So. The problem for enemy authorities is that estimates suggest the death toll will continue to rise for the foreseeable future, with some hospitals approaching the threshold of capacity. Among the most prominent positions that indicate the continuation of the shutdown resulting from the expansion of the pandemic is the position of Prime Minister Benjamin Netanyahu, who made it clear on Facebook that “the shutdown will last a month and perhaps much longer,” noting that this is linked to goals and measures that determine when to close. According to an analysis by the Israel Information Center, it will take more than three months to reduce the daily number of wounded to 400.

Israel surpassed the United States in the number of deaths per day relative to population.

At the security level, the Chief of Staff of the enemy army, Aviv Kochavi, decided to impose a ban on the return of soldiers to their homes for a month, in an attempt to limit the spread of the virus in the ranks of the army, saying that “This issue is necessary in two respects: the first is to preserve the army’s competencies to carry out its Security tasks, and the second is to preserve the army’s ability to provide extensive assistance to civil authorities. However, the most direct and immediate repercussions for citizens and leaders continue to be that the competent authorities warn that the Israeli economy is on the verge of an “unprecedented shock”, especially since what were bad scenarios estimated by the competent authorities has become a reality, but the fear of what is worse in terms of proportion. Unemployment, fiscal deficit and high public debt.
The fears are not limited to economic losses of around 20 billion shekels ($ 5.76 billion) through mid-October. What is more dangerous, on the part of Israel, is that the outcome of the economy by the end of this year will be closer to the worst estimates, specifically as a result of the second shutdown, with the probability that the health crisis will intensify with the end of fall and the beginning of winter. According to estimates by the Ministry of Finance, the economy will contract by 7.2%, which is the highest rate among current estimates. On the other hand, the “Central Bank of Israel” had estimated the rate of contraction at 4.5% in the best of cases and 7% in the worst. Regarding the general budget deficit in the current year, the estimates of the Ministry of Finance are going to adopt an unprecedented rate of 13.4% of the total volume of GDP, and it is feared that this deficit will continue in the next year, knowing that it is three times the rate of the budget deficit in years. Latest. The increase in the deficit will mean a sharp increase in the volume of public debt, from 60% at the end of 2019 to between 75% and 78% of the total volume of GDP at the end of 2020.
However, the social repercussions of the worsening of the economic crisis go through the high unemployment rate, which represents the hardest blow to the Israeli economy, since the Ministry of Finance estimates that by the end of this year it will reach 13.6% , in addition to other repercussions represented in the fall in purchasing power, the fall in production and high rates. Poverty. As with all problems and challenges, political employment takes place in all directions; On the one hand, Netanyahu is trying to take advantage of the worsening health situation to impose a state of emergency that prevents demonstrations against him, and on the other hand, criticism is increasing against the government, led by Netanyahu, for not having fought. to Corona. In this direction, positions continue to warn of the repercussions of the government’s resounding failure with respect to the virus, which many experts have compared to Israel’s failure to anticipate and prepare for the “October War.”

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