Before I get started with this case study, let me clarify that Israel is a socialist country founded by Marxists. So there is very little freedom here.
Now, that being said, government controls healthcare and education entirely. My wife, Natasha, works at a college that is funded by the government. It is extremely inefficient because, no matter how wasteful it gets, taxpayer funding is always guaranteed. Natasha is also very pregnant. There is also a law here that you can’t fire pregnant women. Sounds great, right?
Well, I came home today and Natasha told me that because she’s giving birth (God willing) before the semester actually officially ends, the college cannot legally NOT rehire her. So because she’s having a baby, she’s assured a placement next semester, regardless of whether the college has a class for her to teach.
Well, good news for us, right? Eh…I’d much rather not pay taxes than pay taxes and have my wife get a job because it’s illegal if she isn’t rehired.
It turned out OK for us, but what if circumstance were reversed? What if they refused to hire Natasha initially, suspecting she was pregnant, because they know that they wouldn’t be able to let her go the following semester?
The whole system is rotten. Taxpayer money flowing through a system and misdirected through legal mechanisms will only cause mal-investment, which, any Austrian will tell you, will have to be liquidated. Money earned through government force may as well be welfare. Money must represent value. Not government intrusion.
Natasha is a good teacher. She should be rehired on the basis of need and talent. If they have no need for her, they shouldn’t rehire her just because she was pregnant. If they do, we’re getting money that represents no value.
And the debt bubble expands just a little bit more.
What will we spend it on? Probably gold.