Israel: Waking Up in a Fool's Paradise

Faced with triple-digit inflation, the government tries austerity

This is my sixth visit to Israel, and I am amazed at your apparent prosperity. It seems that every flat has a TV, usually color, one and sometimes two cars, and other modern appliances." Few visitors to Israel would dispute that glowing report, which came from an American tourist in a letter to the Jerusalem Post. Highways are flooded with new cars. Shop windows are filled with food processors, freezers and videocassette recorders. At Tel Aviv's Ben Gurion Airport, long queues of vacation-bound Israelis wait...

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