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Welfare system could cause Israel to collapse, economist warns
When people talk these days about Israel's economy, they use words like booming, resilient, even "miracle."
Weaning itself off socialist-influenced policies that once brought 400% inflation and 60% income-tax brackets, Israel's economy is now growing despite the international financial slowdown. Debt is manageable, the currency is strong; Israel's high-tech sector is admired worldwide.
But one Israeli economist is warning that beneath Israel's back-patting lurks a hidden peril–fueled by demographic trends and political choices–that could eventually mean an end to the country.
Armed with a Power Point presentation he's been showing to lawmakers, newspaper publishers and anyone else who will listen, Dan Ben-David, executive director of Jerusalem-based Taub Center for Social Policy Studies in Israel, says the problem is simple: Not enough Israelis are pulling their own weight.