Since it is much easier to raise funds by pulling at the heart strings, the Jewish Diaspora establishment persists in treating Israel as the poor and less capable relative, largely ignoring the great talents and ability, even the relative success, that many Israelis exhibit.
In a two-year course the Jewish Agency holds for promising young Diaspora leaders, all they see and learn about is welfare Israel, with almost no acquaintance with Israel’s productive side.
Lack of full and proper information about Israel has not only limited American Jews’ ability to defend Israel in the international arena.
It has also caused a serious misapprehension of Israel’s internal problems and what must be done to solve them.
Filed under:
Diaspora
Levy Eshkol: Israel is seen as a _Nebichdike Shimshen_ ("Pitiful Samson"), its citizens a bunch of _schnorers_
Lack of full and proper information about Israel has not only limited American Jews’ ability to defend Israel in the international arena. It has also caused a serious misapprehension of Israel’s internal problems and what must be done to solve them.
Ever since the 1920’s, when Chaim Weitzman’s pro-Socialist camp wrested control of the American Zionist Organization, and later of the Jewish Agency, from the pro-private enterprise camp of Justice Louise Brandeis, most of the aid donated by American Jews was spent on collectivist settlements and on Labor Federation enterprises that supposedly represented the pioneering spirit of the New Israel. That these enterprises failed repeatedly, going bankrupt practically every decade since the twenties, did not deter their supporters from pouring more and more aid into them, despite repeated warning issued by expert commissions that investigated these failures.
Funds donated by well-intentioned American Jews helped underwrite the economic failure of Zionism; the Yishuv (Jewish community) in Palestine remained economically underdeveloped throughout the period of the British mandate. This provided the British with the excuse to limit pre-Holocaust Jewish immigration into Palestine, with all the horrendous consequences. Economic weakness has had, of course, other damaging political, demographic and social consequences.
After the establishment of the State of Israel, American Jewish aid continued to be channeled mostly to Labor’s collectivist sector, whether as assistance for the absorption of immigrants or as “development” aid. But gradually, as Labor’s collectivist institutions collapsed under the weight of their growing inefficiency and corruption, aid was redirected to a bureaucratic welfare establishment, both “public” and governmental.
The establishment of the UJA, and the almost total emphasis put in the American Jewish community on charitable fundraising, has accelerated the trend of considering Israel solely as a charity ward, as an object of pity that occasionally makes Jews stand taller by performing military stunts such as the Entebbe rescue. Israel’s late Prime Minister Levy Eshkol quipped that Israel was considered a Nebichdike Shimshen (“Pitiful Samson”), its citizens a bunch of schnorers.
Since it is much easier to raise funds by pulling at the heart strings, the Jewish Diaspora establishment persists in treating Israel as the poor and less capable relative, largely ignoring the great talents and ability, even the relative success, many Israelis exhibit. In a two-year course the Jewish Agency holds for promising young Diaspora leaders, all they see and learn about is welfare Israel, with almost no acquaintance with Israel’s productive side.
Huge amounts of money poured by The Joint, The UJA and dozens of other welfare associations have arguably done a lot to alleviate the short-term suffering of the destitute. But long-term they have not had been a major factor in building a damaging welfare lobby in Israel that perpetuates a culture of poverty. Its institutions churn out dubious statistics (like the ones based on a fictitious “poverty line”) that distort the issue of poverty and how it can be resolved by focusing on the marginal problem of hunger and ignoring the widespread problem of destitution caused by the fact that hundreds of thousands of Israeli families cannot make ends meet because of low wages caused by low productivity. Such distortions lead to policies that hold a third generation of Israelis in a poverty trap with no exit in sight.
Despite all the enormous resources poured into welfare by government, more and more Israelis fall below the (problematic) poverty line. 55% of GNP is devoted to public expenditures, compared to an average of 41.3% in OECD countries. Over a third of the government’s bloated $70 billion plus budget goes to transfer payments, the highest proportion in the Western world!
Between the years 1990 to 2003 the population of Israel grew by 43%, but the number of people receiving guaranteed income from the government grew by 600%, namely by 15 times the rate of the population growth. Yet the modest efforts of Finance Minister Netanyahu to cut the bloated welfare lists were characterized by his political enemies, and by some Diaspora leaders, as “cruel”! Focusing on welfare, many Diaspora leaders fail to grasp that the only way to liberate the poor from their continuous predicament is to generate economic growth by liberating the Israeli economy from the stifling hand of government and the monopolies that rule it. During a transition period, those capable of working should be helped to acquire the skills that will enable them to replace the almost 300,000 foreign workers now employed in Israel. Getting those people who can work off the welfare rolls will enable the government to better support those who really deserve help: the sick, the old and the incapacitated.
American Jews can greatly help Israel in making the transition from a low productivity society that forces so many Israelis to live on measly salaries of $1,200 a month, making hundreds of thousands of families unable to make ends meet. They could help them advance from a welfare dependent society torn by radicalized political strife over the distribution of government handouts to a highly productive society, yes, even a rich society. They can share with Israelis the secret of their own success; their ability to compete in a highly dynamic and productive free enterprise system; they can treat them as productive partners rather than as beggars.
But to do so they will have to overcome old ingrained habits by getting a better understanding of what really ails Israel, and how it can be cured.
Log in or Register
Misinformation begets bad policies
The Jerusalem Post
23 Jun ’05
Since it is much easier to raise funds by pulling at the heart strings, the Jewish Diaspora establishment persists in treating Israel as the poor and less capable relative, largely ignoring the great talents and ability, even the relative success, that many Israelis exhibit.
In a two-year course the Jewish Agency holds for promising young Diaspora leaders, all they see and learn about is welfare Israel, with almost no acquaintance with Israel’s productive side.
Lack of full and proper information about Israel has not only limited American Jews’ ability to defend Israel in the international arena.
It has also caused a serious misapprehension of Israel’s internal problems and what must be done to solve them.
Filed under:
Diaspora
Levy Eshkol: Israel is seen as a _Nebichdike Shimshen_ ("Pitiful Samson"), its citizens a bunch of _schnorers_
Lack of full and proper information about Israel has not only limited American Jews’ ability to defend Israel in the international arena. It has also caused a serious misapprehension of Israel’s internal problems and what must be done to solve them.
Ever since the 1920’s, when Chaim Weitzman’s pro-Socialist camp wrested control of the American Zionist Organization, and later of the Jewish Agency, from the pro-private enterprise camp of Justice Louise Brandeis, most of the aid donated by American Jews was spent on collectivist settlements and on Labor Federation enterprises that supposedly represented the pioneering spirit of the New Israel. That these enterprises failed repeatedly, going bankrupt practically every decade since the twenties, did not deter their supporters from pouring more and more aid into them, despite repeated warning issued by expert commissions that investigated these failures.
Funds donated by well-intentioned American Jews helped underwrite the economic failure of Zionism; the Yishuv (Jewish community) in Palestine remained economically underdeveloped throughout the period of the British mandate. This provided the British with the excuse to limit pre-Holocaust Jewish immigration into Palestine, with all the horrendous consequences. Economic weakness has had, of course, other damaging political, demographic and social consequences.
After the establishment of the State of Israel, American Jewish aid continued to be channeled mostly to Labor’s collectivist sector, whether as assistance for the absorption of immigrants or as “development” aid. But gradually, as Labor’s collectivist institutions collapsed under the weight of their growing inefficiency and corruption, aid was redirected to a bureaucratic welfare establishment, both “public” and governmental.
The establishment of the UJA, and the almost total emphasis put in the American Jewish community on charitable fundraising, has accelerated the trend of considering Israel solely as a charity ward, as an object of pity that occasionally makes Jews stand taller by performing military stunts such as the Entebbe rescue. Israel’s late Prime Minister Levy Eshkol quipped that Israel was considered a Nebichdike Shimshen (“Pitiful Samson”), its citizens a bunch of schnorers.
Since it is much easier to raise funds by pulling at the heart strings, the Jewish Diaspora establishment persists in treating Israel as the poor and less capable relative, largely ignoring the great talents and ability, even the relative success, many Israelis exhibit. In a two-year course the Jewish Agency holds for promising young Diaspora leaders, all they see and learn about is welfare Israel, with almost no acquaintance with Israel’s productive side.
Huge amounts of money poured by The Joint, The UJA and dozens of other welfare associations have arguably done a lot to alleviate the short-term suffering of the destitute. But long-term they have not had been a major factor in building a damaging welfare lobby in Israel that perpetuates a culture of poverty. Its institutions churn out dubious statistics (like the ones based on a fictitious “poverty line”) that distort the issue of poverty and how it can be resolved by focusing on the marginal problem of hunger and ignoring the widespread problem of destitution caused by the fact that hundreds of thousands of Israeli families cannot make ends meet because of low wages caused by low productivity. Such distortions lead to policies that hold a third generation of Israelis in a poverty trap with no exit in sight.
Despite all the enormous resources poured into welfare by government, more and more Israelis fall below the (problematic) poverty line. 55% of GNP is devoted to public expenditures, compared to an average of 41.3% in OECD countries. Over a third of the government’s bloated $70 billion plus budget goes to transfer payments, the highest proportion in the Western world!
Between the years 1990 to 2003 the population of Israel grew by 43%, but the number of people receiving guaranteed income from the government grew by 600%, namely by 15 times the rate of the population growth. Yet the modest efforts of Finance Minister Netanyahu to cut the bloated welfare lists were characterized by his political enemies, and by some Diaspora leaders, as “cruel”! Focusing on welfare, many Diaspora leaders fail to grasp that the only way to liberate the poor from their continuous predicament is to generate economic growth by liberating the Israeli economy from the stifling hand of government and the monopolies that rule it. During a transition period, those capable of working should be helped to acquire the skills that will enable them to replace the almost 300,000 foreign workers now employed in Israel. Getting those people who can work off the welfare rolls will enable the government to better support those who really deserve help: the sick, the old and the incapacitated.
American Jews can greatly help Israel in making the transition from a low productivity society that forces so many Israelis to live on measly salaries of $1,200 a month, making hundreds of thousands of families unable to make ends meet. They could help them advance from a welfare dependent society torn by radicalized political strife over the distribution of government handouts to a highly productive society, yes, even a rich society. They can share with Israelis the secret of their own success; their ability to compete in a highly dynamic and productive free enterprise system; they can treat them as productive partners rather than as beggars.
But to do so they will have to overcome old ingrained habits by getting a better understanding of what really ails Israel, and how it can be cured.
More recent commentary
The New Republic
19 May ’11
Economic Miracle
A Middle East peace strategy that could actually work.
The Jerusalem Post
15 Mar ’11
The government-tycoons-media triangle
Israel needs to slash its state budget by as much as possible if it wants a chance at fighting waste and corruption.
The Jerusalem Post
9 Mar ’11
Welfare and rebellion: The economic factor in the Arab uprisings
Too little attention has been paid to how Egypt’s socialist past and welfare-state present shaped the current rebellion.
The Jerusalem Post
7 Feb ’11
Is all quiet on the economic front?
The Herzliya Conference has become an important international event, but one central issue is absent: Israel’s debilitating economic concentration.
The Jerusalem Post
22 Jan ’11
Teaching an elephant to dance
It’s highly unlikely that government can ever learn to make long-term plans and execute them efficiently.
The Jerusalem Post
23 Dec ’10
Hellenization and Enlightenment: Post-Hanukka ruminations
How can one dare compare narrow-minded religion with the all-embracing faith of universality and equality that is socialism?
The Jerusalem Post
1 Dec ’10
Would Milton Friedman have approved?
Many of the social and economic troubles we are experiencing are due to the public’s lack of understanding of the need for economic literacy.
The Jerusalem Post
17 Oct ’10
Perverting public discourse
The PM’s courageous decision to tackle economic concentration was misrepresented by several of our media publications—owned of course by tycoons.
The Wall Street Journal
8 Oct ’10
Breaking Israel’s monopolies
Economic concentration hurts the country’s viability and the chances for peace.
The Jerusalem Post
4 Oct ’10
Israel’s progress undermined
A damaging ethos of ‘welfarism’ and distributive politics has come to dominate not only academia but our cultural, military and even our business elites.
The Jerusalem Post
19 Aug ’10
Unable to decide
The reformers must know the importance of the reform’s success both for Israel and for their careers, and what damage they will incur if it fails.
The Jerusalem Post
13 Jul ’10
Elana Kagan, terrorism and the law
Kagan’s admiration for Justice Aharon Barak’s philosophy may have revealed her own predilection for radical judicial activism.
The Jerusalem Post
30 May ’10
Yes, break them up
We must dismantle the oligarch-owned monopolies that impoverish the Israeli consumer and choke our economy.
The Wall Street Journal
18 May ’10
Land of silicon and money
The OECD’s invitation to Israel is a “seal of approval” but the country still needs more reforms.
The Jerusalem Post
10 Feb ’10
The surprise of it all
The world’s astonishment at Israel’s response to the Haiti disaster is insulting. What we saw there was Israel’s true face.
The Jerusalem Post
10 Jan ’10
Hi-tech prospects and pitfalls
Individual initiative and freedom are essential for creativity—in hi-tech as in all other spheres.
The Jerusalem Post
14 Oct ’09
A woman who knew her worth
As far as Rose Friedman was concerned, public kudos did not matter that much. She persisted in being a rose, no matter what.
The Jerusalem Post
22 Sep ’09
Movies in Nablus, dramas in Bethlehem
Lasting peace must grow from the bottom up, from an “economic peace process” that proves what advantages peace has to offer on a daily basis. It cannot come from signing peace agreements with radical and corrupt entities propped up by corrupting Western handouts.
The Jerusalem Post
15 Aug ’09
Israel’s ‘scrambled’ economic system
A courageous recent film has exposes the strong connection between Israeli oligarchs and bureaucrats. Unfortunately however the film’s simplistic pseudo-Marxist treatment is more misleading than revealing.
The Jerusalem Post
24 May ’09
The economy: look to the future
Netanyahu paid heavily to pass a budget in time; his “partners”’ bargaining tactics, bordering on blackmail, reflect poorly on our politics.
The Jerusalem Post
4 May ’09
Reform: prospects and pitfalls
Binyamin Netanyahu’s recent economic plan has great promise but faces obstacles—such as the media and the Histadrut—that may undermine its success.
The Jerusalem Post
11 Apr ’09
Big government? Yes, but there’s a reason
Is Binyamin Netanyahu’s government too big? Yes. So why would Netanyahu create such an unwieldy beast?
The Jerusalem Post
30 Mar ’09
To bail or not to bail
Should the government bail out those of our tycoons who cannot redeem NIS 100 billion worth of bonds?
The Wall Street Journal
12 Mar ’09
Mideast peace can start with economic growth
Billions of dollars in foreign aid to the Palestinians has resulted in war not peace. There’s a better way.
The Jerusalem Post
22 Feb ’09
Warning cries from Herzliya
The government is dysfunctional. The question is why—and how to mend it.
The Jerusalem Post
2 Feb ’09
A lesser economic evil
All government deficit spending is bad. But sometimes deficits are unavoidable. And some deficits are better then others.
The Jerusalem Post
22 Dec ’08
Spinners and cheaters
Why not exploit the crisis to destroy what little freedom Netanyahu’s reforms brought to the economy? Why care if the country will lose its only hope of deliverance from the economic retardation caused by our statist heritage?
The Jerusalem Post
3 Dec ’08
Precipitating the next collapse
Focusing on a putative pension crisis distracts our attention from the real serious crisis that a worldwide recession is bound to create here.
The Jerusalem Post
22 Oct ’08
The panic-mongers’ one-note chorus
The country, the pundits conclude, must return to the good old days of “social democracy.”
The Jerusalem Post
15 Jul ’08
The banks are bamboozling us again
In the name of stability the comptroller has ignored many of the banks’ offenses.
The Jerusalem Post
29 Apr ’08
An Irish-style banana republic
It must be either naiveté or cynicism that allows “Israel 2028” to recommend a reform that will make government a larger and a more efficient instrument for economic growth.
The New York Sun
29 Apr ’08
Israel still doesn’t get economy
Israel’s elites—especially the chattering classes in the press and the academy—are hostile to capitalism because our universities’ social sciences and liberal arts departments are dominated by post-modernist and neo-Marxist professors.
Ideas matter. Hostility to capitalism exacts a great price from the Israeli economy and from its hapless workers.
inFocus
2 Apr ’08
US charity to Israel reconsidered
Jewish institutional efforts must now undergo a period of reform and greater accountability. Some charitable efforts should be privatized. Individuals or groups of donors must take personal responsibility for specific projects, to ensure that funds are dispensed in a responsible and cost effective manner.
The Wall Street Journal
8 Mar ’08
Israel’s no-win strategy
Israeli politicians are preoccupied with political machinations designed to buy support from powerful interest groups by distributing government largesse. This causes not only the factionalization of politics and growing corruption, but consumes time and energy that leadership should use to address life and death issues.
The Jerusalem Post
20 Feb ’08
Dangerous infatuation
Government can no more control powerful economic forces than it can the rise and fall of tides. To effectively fulfill its nightwatchman role—to protect us from internal and external violence and to enforce contracts—government must be kept limited.
The Jerusalem Post
22 Jan ’08
What’s ‘public’ about their broadcasting?
Our “public channel,” funded by a compulsive tax, does not need to be pluralistic or even-handed.
Like other public institutions that lack well-defined ownership, Channel 1 has consequently been taken over by bureaucrats and by undemocratic workers’ unions.
The Jerusalem Post
21 Nov ’07
A year without Milton Friedman
This man did more good for humanity than any other.
The Jerusalem Post
17 Oct ’07
Getting beyond the teachers’ strike
As long as education remains a government monopoly, it is bound to function like all other government monopolies, where union bosses fill the vacuum that lack of defined ownership creates, and monopoly power allows them to blackmail the public.
The Jerusalem Post
19 Sep ’07
A healthy dose of skepticism
In the wake of the Second Lebanon War, there is hope that the phenomenal performance of the economy will finally make Israelis realize the crucial role it plays in their lives.
The Jerusalem Post
14 Aug ’07
How to grow Israeli hi-tech
At the recent Merage Foundation conference to help Israel’s hi-tech sector grow, calls were heard for more government “direction”. This despite sixty years of massive government intervention and “development efforts” that have led mostly to massive failures and waste.