Economists Warn of Societal Collapse Due to Government Policies
Translated & summarized from Zman Yisrael by baba
Leading economists warn that Israeli government policies and the rapid growth of the Haredi population are leading the country toward economic and social collapse. A report by the Shoresh Institution highlights a significant productivity gap and underfunding of essential sectors due to misallocated public resources. The report also points to a "third-world level" education for many students and an increasing emigration of skilled professionals. Professor Dan Ben-David proposes radical reforms to the education system and government structure to avert these threats.
The story in 6 lines · by baba
- Economists warn Israeli government policies and Haredi population growth risk societal collapse.
- A Shoresh Institution report highlights a widening productivity gap and misallocation of public funds.
- Education for a significant portion of Israeli students is described as "third-world level."
- Emigration of skilled professionals, particularly doctors, has sharply increased.
- Professor Dan Ben-David proposes radical reforms to education and government structure.
- The government continues to fund educational networks lacking core curriculum studies.
Leading Israeli economists have warned that the government's policies, combined with the rapid growth of the Haredi population, are pushing the country towards a "collapse spiral." They predict that many Israelis will choose to emigrate, leaving behind a worsening situation for the most vulnerable populations. This warning, issued in May 2024, has reportedly had little impact on the current government, which has continued to allocate significant funds to educational networks that do not teach core subjects, even without proper committee approval.
A report by the Shoresh Institution, authored by Professor Dan Ben-David, corroborates these concerns, highlighting severe economic and social threats. The report contrasts Israel's past achievements in productivity and infrastructure development with its current stagnation, attributing the decline to a shift in public funds from national priorities to sectoral and personal interests. This has resulted in a stark productivity gap, with a small elite in high-tech driving growth while the majority lag behind developed nations.
Ben-David argues that the problem is not a lack of resources but the misallocation of public funds. He points out that subsidies for the Haredi community exceed the combined spending on research universities and hospitals, funds that could otherwise strengthen human capital and national resilience. The report criticizes the "third-world level" education received by a significant portion of Israeli students, particularly in rapidly growing Haredi and Arab communities, which lack core curriculum studies. This educational deficit, coupled with a growing skills gap, poses a substantial economic and social threat.
The exodus of skilled professionals, especially doctors, has also intensified, with a threefold increase in the ratio of emigrating doctors to those remaining in Israel over two decades. The political climate and the ongoing war have further accelerated emigration, with departures in 2024 exceeding returns by 160%. Ben-David suggests radical reforms, including a unified education system with mandatory core studies, an end to funding for institutions failing to meet standards, and increased transparency in subsidies for the Haredi sector. He also proposes governmental restructuring and the establishment of a constitution to safeguard national foundations and citizens' rights, warning that without a fundamental shift in national priorities, Israel risks losing its status as a developed nation.
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