This speech was presented as part of 'Hyde Park' on the state of the legal system in Israel The Public Debate Club

In the public debate, the participants presented positions that touched on the welfare system and its limitations - legal, ethical and economic issues such as: the sources of inequality, different aspects of poverty, and different approaches to addressing the problem of poverty.

Below is a summary of the positions presented as agreed upon during the discussion.

Free market - more wealth for all means less poverty for the poor

Moshe - a lawyer

I will talk today about how the fiscal policy that causes the deepening of social gaps and poverty. When it is meant that the state, through the tools it has like taxes, wants to address welfare problems but causes something opposite.

I will explain the free economy model, then I will talk about the imposition of taxes and finally about the welfare trap.

The free economy
Let's start with Adam Smith's free economy - which showed that in order to achieve maximum efficiency, the government must not interfere. that in order to reach maximum output, the markets must be made to operate on their own.
For example if we take all the socialist and communist economies, it seems that the capitalist ones are much more successful. If we take economies like Russia it seems that people there are suffering.

Taxes and economic activity
Secondly, I will talk about the subject of taxation. To finance welfare activities we impose taxes on income. When we impose a high tax we reduce the income, they buy less furniture and products, therefore the demand is small and then the supply is also small and then they are laid off and then more people join the welfare circle.
An example of this is the economic growth that happened starting in 2003 when they cut the tax on work.

The moral hazard
The third issue is the welfare trap. Distribution of allowances causes a situation where it is not worth it for people to go to work, especially at minimum wage. The difference is so low, and receiving the allowances is so easy, that there is no incentive to go to work. And so the government that wants to help the poor makes them stay in the cycle of poverty.

So I saw how the intervention worsens the problem, we talked about Adam Smith, the welfare trap and the high tax trap.

About the public debate club

As part of the club, a monthly 'Hyde Park' is held, that is, an open public discussion on a topical issue, in which each participant presents his positions in a limited time, and receives feedback from the other participants and the moderator Guy Yariv. The goal of the club is to improve public discourse and allow for in-depth discussion of controversial issues while learning rhetoric and improving speech and persuasion skills.
The club is open to the public and includes support for participants who suffer afraid of what Or they have no experience in public speaking.

The Public Debate Club

Analysis of the problem of poverty

• How did the inequality arise?
• Too many children for those who cannot raise them
• The employment rate is too low in Israel
• More wealth for all - less poverty for the poor
• The 'I deserve' culture is the cause of poverty
• The free market will reward the poor from poverty
• The meaning of social differences

Suggestions for improving the poverty situation

• Free education from kindergarten to university
• Obligation of a license for the birth of children
• negative income tax

Position papers on the subject

• Does the poverty line lie?
• limit the salary of the managers
• Tax on capital gains
• Bringing Haredim and Arabs to work
• The problem of education in the periphery
• Expand the Wisconsin program
• Government intervention in the economy

• How to fight poverty in Israel
• University tuition fees
• Where to limit freedom of speech?
• Religious coercion or Jewish discrimination?

Previous public hearings

• Sex and morality: from porn to pride
• The rule of law: between the High Court of Justice and Alferon
• Medicine and morality: the limitation of the right to life
• Who is to blame for the crisis in the education system?
• Lecture: The development of the economic crisis
• Who should be the prime minister?
• Environmental quality: Is it at any cost?
• What caused the economic crisis?

Public speaking courses