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Posted on Sustainabilitank.info on March 25th, 2017
by Pincas Jawetz (pj@sustainabilitank.info)

Professor Berglas played a crucial leadership role in developing the economic department at Tel Aviv University. He began this role in 1967, which was a critical year for achieving accreditation for the department’s B.A. program by the Higher Education Committee.

Professor Berglas served the University as Chair of the Economics Department (1968-70 and part of 1978), as Dean of the Faculty of Social Sciences (1972-4) and as Vice Rector (1978-9). As one of Israel’s leading economists, he participated in many public activities and served as a Director of the Budget in the Ministry of Finance. Later he was appointed as a Chairman of the Board of Directors of Bank Hapoalim.

In late 1992, the Tel Aviv University Senate decided to expand the Department into a School of Economics, to be named in memory of Professor Eitan Berglas, who had passed away in the same year.

Today, when you search googles for Professor Berglas, it is very difficult to find anything about the man because of the sae of material about the school that bears his name. I would like to point out that this is te highest compliment of achievement a man can get- the legacy he leaves behind.

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Sunday, March 19, 2017 I went to the Eitan Berglas School of Economics, on the Campus of the Tel Aviv University (TAU) for the yearly memorial study session named after Professor Eitan Berglas. The topic was: “THE RISING OF CRONY CAPITALISM IN AMERICA” and the lecturer – Professor Luigi Zingales of the Chicago Booth School of Business.

in short – Prof. Zingales tried to address “WHITHER AMERICA?” We found this term used by Prof. Zingales also in the “Corporate Defense Law for Dispersed Ownership” – a Scholarly volume published by Hofstra University, near New York City, where coincidentally was held the first
Obama-Romney Presidential debate.

Professor Zingales, an Italo-American, schooled in Italy, started by saying that the US starts to look like Italy – day-by-day. This surely was not meant as a compliment, though some of my friends in the US might actually prefer the Italy of today, conceding that there might be similarities with the Italy that gave the world Benito Mussolini – a proto-model for Donald Trump.

Zingales published a volume in 2012 – before the elections that year, but he complains – nobody paid attention then. He actually was depicting that changes to be introduced by an Obama Administration might lead to a Mussolini alike follow up Presidency.

Zingales remarked that FOREIGNERS can see the problems of a country better then its citizens.

The two leads for his economic evaluation that could lead to the vision of te future are POPULATION AND PRODUCTIVITY. He is an economist of numbers – not of emotions. His numbers showed a US in decline. The main problem is the LABOR PARTICIPATION DECLINE. Even taken at their prime time – there was developing a sharp decline of the value added of the labor.
Social Mobility has declined – all of tis despite the growth in GDP and even GDP/Capita
and 80%of the income goes to top 1% This is one clear cause of the Trump success.

In total there are three reasons: Decline in productivity growth; decline in employment opportunities; decline in income and average wages.

Also – Small firms decrease more then the Large Firms.

Government ought to look into these problems and help remedy them. This is done with
positive regulation which is a market place regulation. Talking about all regulation is bad
is what causes those declines. Te only country that is above regulation is Somalia – that because they have no government. what

Surely, the two hours plus of the meeting did not mention Trump – but you guess what that evening did actually present. Also, as it happened in Israel, you guess what Israel must also learn from this – and figure out how iterferred with was Obama, and how that interference did not allow him to prevent that Italy of the twenties and thirties alike development.

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