Social Privatization

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The public and political discourse in Israel on the issue of privatization is a "black and white" discourse. It is either in favor of or against a certain type of privatization, an 'elitist' privatization, in which assets belonging to the public are transferred to a limited elite. The alternative to elitist privatization is "social privatization." Social privatization means transferring control of assets owned by the state to a large number of people. This is a redistribution of wealth accumulated and controlled by the state through its transfer to the entire population, in a way that spreads wealth and ownership in a broader and more equitable manner. The primary goal of social privatization is, first and foremost, a new and more equitable distribution of wealth, and as a result, the mitigation of wealth concentration and the dispersion of control cores in the economy. This is done by expanding the public's access to the new wealth that is created (or alternatively, to the old wealth that is "liberated"), while granting property rights that did not exist in the past, in a smart and responsible manner, where the government dictates the terms of privatization. It should be noted that the proposal for social privatization in this document refers only to the privatization of government companies defined as business companies and not to the privatization of services, associations, or lands.

In the first stage of the social privatization process, the government will distribute shares and options to the public and to the company's employees, instead of selling them as is customary today. This is because government companies are budgeted from tax money, which is public money, and the public is the one who paid for the establishment and maintenance of the companies and therefore is also the natural owner of the company. The transition from a publicly owned company to a public company is the basic action performed in the privatization process.

In the second stage of privatization, the organizational framework of the new public company must be defined. This framework will be explicitly defined by the government. Without agreement on this framework, the privatization will not be implemented.

As mentioned, social privatization helps to reduce gaps by increasing the wealth of the weaker populations (the company's employees) and of the general public directly. The loss of income from direct taxes caused to the state by the distribution of shares will be offset by indirect tax revenues as a result of the increase in individuals' wealth. In most cases, privatization leads to an increase in output, which contributes to an increase in the overall level of output in the economy, thus improving its economic resilience. The transfer of companies to the control of the employees will ensure that the company's efficiency processes are done responsibly, and privatization does not necessarily mean extensive workforce cu