Charedim: A Poor Economic Defense
Defenders of non-working charedim say they still spend a lot, which helps spur the economy.
This is Keynesian nonsense. Spending doesn’t grow anything. Otherwise, why not subsidize even more charedim to stop working, and just spend?
Worse, claims like the following letter are heard:
While the information Hamodia provided on the flow of funds of American Orthodox Jews into the Israeli economy was both important and timely (“Where Is the $?” 19 Tammuz/June 27), I would like to point out that chareidim in Israel also contribute significantly to the economy, whether or not they hold paying jobs.The Israeli government charges VAT on almost every item purchased and every service rendered, as well as for utilities such as electricity, gas and water. Because it is a regressive tax, VAT payments are made equally by all purchasers, regardless of their economic situation.What’s more, the purchase of goods and services boosts the economy by creating jobs.
Chareidi families, baruch Hashem, tend to be large, and their purchases reflect this. Every item they buy contributes to the economy in a variety of ways.
Of course, I am in no way implying that chareidim don’t work. Many do, indeed, hold jobs, and that number is growing. I am just pointing out that income tax is not the only tax, and that there is more than one way of contributing to the economy.
The writer assumes it is government spending which makes us wealthy. Actually, the money should be kept in the productive sector, saved and invested by many different individuals, not looted, malinvested, redistributed, and allocated centrally.
Find another way to justify the dole. Or not.
