Israelis suffer from class discrimination and social inequalities although Israel ranked 14th on the World Happiness Index.
In 2020, the middle and lower classes were gravely affected by the coronavirus crisis and ensuing lockdown measures, deepening inequality in the country.
According to a new report released by Adva Center in Tel Aviv on Sunday, nearly one million people became unemployed or closed their small businesses as a result of the crisis.
More than half of the workers placed on unpaid leave worked in small businesses, it stressed.
However, the report pointed out that the upper class was not affected by the crisis and in the past year has only grown richer.
The report obtained data on the rich from Credit Suisse for the year 2020 and said the number of millionaires in Israel slightly decreased.
It stated that 157,300 millionaires, who have an average net worth of $3.33 million, and the wealthy, who have the highest income and make up only one percent of the population, have benefited from the protection and assistance of the state.
“The upper echelon was at the forefront of the beneficiaries of protection and assistance from the state, which relieved the country’s rich from the immediate burden of financing the results of the economic crisis,” the report read.
The crisis relief program has greatly increased government debt without taking steps to raise tax rates on the richest, it added.
A large part of the taxes, which will probably be introduced within a year or two to reduce debt and deficit, will be imposed on the middle class, it continued.
Despite all these changes, the Tel Aviv Stock Exchange index rose by about 18 percent over the past year, 28 new companies joined the stock exchange and profits amounted to 12 billion shekels, an increase of 43 percent compared to 2019.
The report further shed light on the Meretz party, which highlighted the inequality issue during its electoral campaign and suggested raising taxes on 120 billionaires so that the poor and those affected would be compensated.
The center finally warned various government organs that they must “wake up” and internalize that it is precisely the less able who have suffered the most damage from the crisis and be prepared to assist them in any way possible.
