The monstrous numbers that could crush the Israeli economy
A grim economic forecast: without a dramatic policy change, the lack of equality in burden, employment gaps, and the absence of core curriculum studies in the Haredi society will lead to a loss of about a quarter of a trillion shekels per year for the Israeli economy by 2050. The data indicates a surge in the Haredi demographic, a shrinking of the productive workforce, a sharp increase in the tax burden, and a risk to the country's financial stability.
A severe economic forecast published on ynet paints a bleak picture for the future of the Israeli economy: without a dramatic and immediate policy change, the lack of equality in burden, employment gaps, and the absence of core curriculum studies in the Haredi society will lead to a loss of about a quarter of a trillion shekels per year for the economy by 2050. The article presents demographic data from the Israel Democracy Institute and the Central Bureau of Statistics, according to which the proportion of Haredim in the population is expected to rise from 14.3% today to about 32% by 2065. The employment rate of Haredi men stands at only about 52%, and their average income is only 56% of that of non-Haredi Jews. The Chief Economist's Office at the Ministry of Finance and the Bank of Israel warn of a "demographic-fiscal trap" threatening the country's stability. The cumulative damage for the years 2035-2045 is estimated at about 240 billion shekels, including loss of output, transfer payments, and excess security costs. The article emphasizes that the average Haredi family relies on a government subsidy of thousands of shekels per month, while a non-Haredi Jewish family contributes a net of 6,614 shekels per month to the state treasury.