It has been pointed out that Israel today economically is similar to the United States at the end of the 19′th century, the so-called “Gilded Age”. The economy was dominated by “trusts”, cartels and monopolies which ripped off the average person and their massive economic power gave them the power to control the political system, particularly in the United State Senate, which then was generally not directly elected by the people, but rather by the State Legislatures.
Thus, paying off a few well-placed politicians protected the interests of these corrupt groups.
Finally, a demand for reform got so strong that it couldn’t be stopped so there were improvements like the passage of the Sherman Anti-Trust Act, the constitutional amendment providing direct election of the Senate by the people, the Pure Food and Drug act, the preservation of the environment and other such necessary reforms.
Israel’s economy and population is being strangled by these same forces. However, there is one factor working to preserve the priviledges of the ruling clique that didn’t exist in the US at the time…the on-going security crisis and the never ending “peace process”. Politicians are able to use these to divert public attention from the economic sickness you described. In France, when the gov’t increased the tax on diesel fuel for truckers a few years ago, they paralyzed the country with a strike. Such a thing in Israel is unthinkable. The funny thing is that the Arab regimes use the conflict with Israel in the same way…it diverts attention away from demands for governmental accountability and democratization.
The question is “what will it take to get the people of Israel to wake up and demand the necessary reforms”?

Susan Kishner