Living in Israel in the 1960s and 1970s: An Insight into the Past
An Informal Look at the 1960s and 1970s in Israel
There's a classic Israeli joke that has been making its rounds since the mid-20th century. The punchline, "How does one amass a small fortune in Israel? Bring in a big one." was generated during the 1960s and 1970s, a time when Israel was just beginning to find its footing on the global stage.
Full disclosure, I wasn't personally there, as I was born in 1993, but through extensive reading, I've gathered a wealth of information about this fascinating period in Israel’s history. It was a time marked by unique social, economic, and cultural conditions that shaped the lives of its citizens during these pivotal decades.
The Israeli Economy in the 1960s and 1970s
Back then, the Israeli economy was heavily socialistic, with most people working in industries dominated by a powerful labor federation known as the Histadrut. This institution acted as a trade union and simultaneously owned significant business conglomerates. The vast majority of wage earners were members of the Histadrut, which helped to ensure job security. However, it also stifled entrepreneurship, as it was difficult for individuals to start their own businesses.
A Government-Subsidized Society
The kibbutzim and moshavim, communal forms of settlement, were still heavily subsidized by the government. As a result, the people living in these communities enjoyed relatively high standards of living. While kibbutz life was highly collective, with children sleeping collectively and equality of wages, there was still a strict adherence to internal rules that controlled consumer behavior. Purchasing anything outside the kibbutz canteen required approval.
Standard of Living and Consumer Choices
Israel's standard of living during this period was adequate but behind many other Western nations. Most people did not own a car, which was a common sight even in the early 1960s. TV wasn't even available until 1966 due to restrictive policies meant to maintain a "pioneering spirit" among younger generations. Moreover, color television was initially considered an unnecessary luxury and colored TVs were only widely available in the 1980s through a policy that aimed to prevent social inequality. However, most people found ways to watch color TV by the late 1970s.
Limited Consumer Choice and Protectionism
The lack of consumer choice was significant, as many products that were freely available in the U.S. and Western Europe were simply not present in Israeli stores. The Histadrut, the leading labor federation, maintained a series of monopolies over many products. The country was also more protectionist, and faced an Arab trade boycott. With just one TV channel and a population of around 2-3 million, Israeli society was relatively parochial.
Modern Israel in Contrast
Today, the picture is vastly different. Shopping malls are stocked with products from all over the world, and international brands are ubiquitous. Office and apartment towers are going up everywhere, and particularly in Tel Aviv, the city is getting a megacity feel. When you look at the architecture, you can see the stark contrast between the old and the new. Structures from previous decades often look outdated, while new structures exude modern aesthetics and functionality.
A Softer Path to Affluence
In general, Israel was a much poorer country in the 1960s and 1970s. People felt more secure due to the job security provided by the Histadrut, and housing was far more affordable. However, entrepreneurship was stifled. Healthcare was the only major area where there might have been less security. Before the National Health Insurance Law of 1995, there were various health insurance organizations, but only the Histadrut's organization did not discriminate based on age or pre-existing conditions. For those who had no other options, joining the Histadrut for health insurance was a necessity. The material standard of living was much lower compared to today.