Crime Costs Israeli Households 8,000 Shekels Annually, Study Finds

A new study by the Shomer Hachadash organization and the Rifman Institute for Negev Development reveals that crime, extortion, and governance failures cost the Israeli economy approximately 23 billion shekels annually. This financial burden ultimately falls on every household, adding about 8,000 shekels per year to living expenses. The research highlights that these costs stem from protection rackets, agricultural terrorism, theft, and the black market, which drive up prices for housing, food, car insurance, and taxes.

The study details that protection costs in the construction sector can reach up to 5% of project budgets, contributing to tens of thousands of shekels in increased housing prices. It also reports that around 93% of farmers in the Eastern Galilee and 90% in the Negev Highlands have experienced extortion and threats. Additionally, car insurance premiums have surged by up to 56% over two years due to rising vehicle theft and vandalism.

Yoel Zilberman, founder and CEO of Shomer Hachadash, emphasized that Israeli citizens effectively pay a double tax: once to the state and again to criminal organizations. He warned that crime is no longer just a security issue but a major driver of the high cost of living, affecting all Israeli households. He called for restoring governance as the most critical economic step to reduce prices and return billions to citizens.

On Rifman Institute's side, Vice President and founder On Rifman noted the "silent tax" from crime limits families' ability to afford extracurricular activities and educational enrichment, harming children's futures. Hagai Raznik, head of the Rifman Institute, stressed that the findings show broad damage to infrastructure development, construction, and investment attraction, especially in peripheral regions.

In response to the findings, Shomer Hachadash urged the government to develop a national plan to strengthen enforcement against criminal organizations, enhance protection for farmers and construction sites, and expand economic enforcement to reduce crime's impact on living costs.