Egyptians used facebook and twitter to oust their president. Israelis used facebook page to achieve something unthinkable – they made Tnuva Food Industries, the Israeli dairy company that controls 70% of the cottage cheese market in Israel, to reduce the price of cottage cheese.
The Facebook page was launched by Yitzhak Elrov. He asked people to boycott cottage cheese until the prices come down. Satyagraha at work in Israel! In a matter of days, 70,000 people joined the facebook page and the page was growing by 2,000 people per hour. Sales of cottage cheese dropped between 20% and 25% during the boycott’s first week. After watching public anger, the Israeli government stepped in and threatened to re-impose price controls on the dairy market if the industry didn’t find a solution. Few days ago, the price cottage cheese in Israel came down by 25%.
Wall Street Journal article quoted
Economists said the outpouring of popular anger suggests that Israel’s strong economic growth in recent years and its standout performance during the global financial meltdown haven’t translated into gains for the country’s lower- and middle-class majority. Large segments of society appear to be increasingly angry at widening gaps between rich and poor, and at the concentration of wealth in the hands of a few families.
In few years time, you will see similar commentary about middle class in India. Inflation in India is becoming more insane. Real estate prices are just obscene. Indian real estate prices are controlled by greedy wealthy people and brokers. I have the fantasy that Yitzhak Elrov’s strategy would work in India to bring down real estate prices. May be we should all boycott buying properties in India for next one year? All of us know, that is not going to happen. Real estate prices may not come down until rules of economy bring down the prices in the natural course.
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