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Arnold Kling
PERMANENT LINK | JANUARY 23, 2003

Supply-side Economics for Israel

Arnold Kling, Great Questions of Economics
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When it comes to the Israeli economy, I am a supply-sider.

Israel's difficulties resemble those of France or Germany, the exemplars of Eurosclerosis. Their high unemployment rates are due largely to regulations and taxes that undercut the ability of businesses to create jobs and blunt the incentive of individuals to work.

Discussion Question. How has the violence in Israel affected aggregate demand and aggregate supply?

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