Wednesday, May 26, 2010

Life in Gaza: Supply Exceeds Demand

Elder of Ziyon posted a couple days ago about this story by England's Financial Times, which describes a serious economic issue in the Gaza Strip: Prices dropping from surplus goods. According to the article,

"...[T]he prices of many smuggled goods have fallen in recent months, thanks to a supply glut that is on striking display across the Strip.
Some argue that Gaza's tunnel economy is becoming a victim of its own success. Hundreds of tunnels have shut down over the past year as the result of greater Egyptian efforts to stop the flow of goods - and weapons - into the Strip. But the remaining tunnels, about 200 to 300 according to most estimates, have become so efficient that shops all over Gaza are bursting with goods.
Branded products such as Coca-Cola, Nescafé, Snickers and Heinz ketchup - long absent as a result of the Israeli blockade - are both cheap and widely available.
However, the tunnel operators have also flooded Gaza with Korean refrigerators, German food mixers and Chinese airconditioning units. Tunnel operators and traders alike complain of a saturated market - and falling prices.
"Everything I demand, I can get," says Abu Amar al-Kahlout, who sells household goods out of a warehouse big enough to accommodate a passenger jet."

Let's keep this in mind the next time an anti-Zionist sings the sad tale of the Gazans. It's simply not true. 

2 comments:

  1. Never mind the phony flotilla sailing for Gaza. And its not Israel that is maintaining the siege. The Stupid Jews feel the need to supply a sworn enemy with all their necessities.

    Now tell me what Egypt has contributed to the Gazans.

    ReplyDelete
  2. Overall unemployment in the Gaza Strip is 38.6 percent, although in some Gaza districts, such as Khan Younis in southern Gaza, unemployment has reached 49.3 percent.

    Much of the industrial sector is inoperative due to damage done (and irreparable due to the impossibility of obtaining reconstruction materials and spare parts through the border).

    The average annual income in Israel is (as of 26th May 2010) $28,200.

    The average annual income in the West Bank and Gaza is $2,900, and the people in the West Bank have much higher percapita incomes but they are lumped together with Gazans.

    The prices of goods smuggled through the tunnels may well have come down. There may well be a warehouses and shops full of goods.

    "owever, the tunnel operators have also flooded Gaza with Korean refrigerators, German food mixers and Chinese airconditioning units. Tunnel operators and traders alike complain of a saturated market - and falling prices."

    But tunnel smuggled goods still have inflated prices as against the same goods that might be bought in Israel or Egypt.

    If you cannot feed your family I would have thought that "Koreanrefrigerators, German food mixers and Chinese airconditioning units" might (just) be fairly low on your list of "must buy" priorities.

    "The sad tale of the Gazans" is all too true.

    Fool.

    ReplyDelete