Connect with us

Hi, what are you looking for?

Jewish Business News


Professor Edward Prescott : Israeli tax hikes would cause a recession

 Edward Prescott

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

/ By Moshe Golan /

Opponents of the government’s economic and fiscal policies received a strong boost yesterday from Nobel Prize laureate in economics Edward Prescott, who criticized Israel’s economic policy, and said that tax hikes would cause a recession.

Prescott, one of the most quoted economists of all time, currently serves as the senior monetary adviser at the Federal Reserve Bank of Minneapolis, and is a professor at Arizona State University. He has come to Israel to accept an honorary doctorate from Bar Ilan University.
“The Israeli economy is in good shape, but not in good enough shape, considering the immense talents found here, ” said Prescott. “One of Israel’s big problems is its high public consumption. Sooner or later, this consumption entails changes in tax policy, and tax hikes on the public will lead to economic depression. This may be the reason why economic prosperity in Singapore, Switzerland, and the US is 40% higher than in Israel.”
Prof. Prescott is coming to Israel despite the academic boycott because of which physicist Stephen Hawking recently canceled his trip here. Prescott will receive an honorary doctorate from the Board of Trustees of Bar Ilan University. Today, he will give opening remarks before top economists and economic leaders at the economic conference of the Aharon Meir Center for Banking and the Azrieli Center for Economic Policy at Bar Ilan University.
Published by



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.