The Communal Cost of Big Money Mistakes

Hat Tip: The Jewish Worker

A few months back, one of the American Yated's regular columnists was asking readers to write in with their eitzot as to how to marry children off without going broke. Clearly, large families + massive wedding expenses do not bode well in the long-term, even where the money can be made available in the short-term. I had started a letter from an "outsider" of sorts, but in the end scrapped it. I figured there was little chance of having a letter published that read:

Advice on how to control wedding costs is readily available. Backbone is what is lacking.
Signed, SL

Maybe I should send my two sentence letter? Who doesn't love concise and to the point?

The Orthodox community as a whole is making far too many *Big Money Mistakes* and few are willing to say what needs to be said. One of the largest Big Money Mistakes clearly is the "dowry" system in which an Israeli family must offer an apartment in order to marry off their daughters. Many will still give and/or issue tzedakah teudot because "it is what it is.

The economist in me has a hard time accepting such reasoning as I believe that giving only propagates a system that will soon come back to bite us. (I know, I'm really mean!) I believe that if the money were not forthcoming, the behavior would change in a natural, organic way. There would be some pain, but it wouldn't be tremendous. Darn that economist in me. . . . . The economist in me also believes that should the behavior not change, the demands on the tzedakah pot would become far too drastic. Once again, darn that economist. . . . . .especially when her predictions are hitting the publications.

The Jewish Worker, via Mishpacha Magazine, reports on the changing the profile of your average tzedakah recipient.

According to Kupat Hair the profile of the recipient of Tzedaka has changed dramatically. In the past most of the people who needed tzedaka were people who had undergone some tragedy, someone died, got sick, divorce etc. the average Charedi was not rich but did not need support from Kupat Hair.

In the last few years this has changed dramatically. Most of the people who now get money from Kupat Hair are regular people who are poor because they married off their children. To marry off their children they had to buy them apartments and that put them under water. They borrowed money that they could not repay and now they need tzedaka (source Michpacha newspaper).

Wasn't Even Going to Comment, but this makes for an interesting break

I wasn't even going to bother with the newest fraud case, this time brought to us by a crime ring in Israel that has been producing false ID cards and records for non-existent students to increase funding for certain yeshivot/kollelim by submitting false reports to the Education . Reports are stating that there are three non-profits involved and another 40 other co-conspirator establishments. Fraud has ceased to surprise me, and I didn't even bat an eye when scrolling through the frum news, until the latest installment of this newest case.

Given my professional and educational background, one thing I've learned along the way is the fraud isn't something that easily surfaces. Breaking a fraud case must often be accompanied by a great tip, hence vehicles such as anonymous fraud tip hotlines. And, here, the tip won't disappoint.

The "moser" that tipped off Israeli authorities is none other than our favorite friend, the Neturei Karta. As per reports, when members of this sect discovered their names were being used to illegally receive stipends from the Israeli government, they tipped off law enforcement and law enforcement began to monitor the illegal activity resulting in a raid and arrests.

I know I should only feel shame when yet another fraud scheme involving "observant" Jews who stand for "Torah" comes to light, but it is hard for me not to at least a slight bit, uh, excited about the tip that has brought yet another crime ring to face the music. Hashem certainly has a sense of humor.

Creating Greater Dependency

[Note: I sometimes choose to post on Israeli Economic issues, but my knowledge of the ins-and-outs of Israel are lacking, so commentary is always appreciated. Also, I know I do not recognize some other pressing issues facing Israeli society in my post such as the growing demographic issues. Nonetheless, some commentary].

I admit, I have not been keeping up with the blow-by-blow regarding kollel stipends in Israel. But any economist that bothers to factor in human behavior into their predictions and calculations will tell you that this latest proposal being pushed by Shas, in the name of "equality" (and appeasement, no doubt), is just another road to create yet another dependency class in Israel. Expanding a dependency program to another class of students will certainly create perverse incentives, especially when the requirement to qualify is not based on quality (of academics/research/Torah learning) but on quantity (of children) and lack wealth creation (note: students cannot personal income from a job of their own or spousal income to qualify).

According to an article published on 11/4/2010 at ynet.com and 11/5/2010 and 10/24/2010 at JPost.com, Shas Chairman Eli Yishai seeks to award University students raising one child or more the same assured income received by yeshiva students with three or more children.

Yishai states 1) it is all for the children and 2) naysayers speak out of hatred and to incite:

"We have no objection that [university] students will also receive the benefit. Anyone who would propose otherwise is behaving in a discriminatory way,"; "The entire goal [of the bill] is to provide support to the tens of thousands of children living below the poverty line and to close [social] gaps."; "We do not object that every student who studies should receive the benefit. Anyone who would say otherwise speaks out of hatred and to incite."

I speak not from hatred, nor out of lack of concern for "the children" but because this is bad public policy and faulty economics.

This Goes to the Heart of Things Marriage and Family

Marty Bluke at the Jewish Worker summarizes an article from the Hebrew Mishpacha. I have to wonder what sort of new social experiment, which goes beyond all things marriage and family, will result next should economic change not be accepted and approached with sechel:

This weeks Hebrew Mishpacha magazine had a very depressing article that because of the economic downturn and the rising apartment prices the shidduch market has slowed down dramatically in Israel. The reason is very simple fewer and fewer parents of girls can afford to buy an apartment for the couple. Many/most of the boys are still holding out for an apartment and there are very
few parents of girls who can afford it.

The article says that the dormitories in the Yeshivas are full because the older boys who should be getting married aren't. One Rosh Yeshiva said that usually around 30 boys a year get married, this year only 10 got married. The head of a post high school seminary said that in the past half the girls were engaged or married by the end of the year, last year it was only 10%. The reason is very simple, the boys are holding out for an apartment and the girl's parents simply can't afford it.

The bottom line is that the average Charedi family size has gone up to over 6 kids per family and the income sources have gone down. In previous generations people had war/holocaust reparations from Germany, people actually worked, the cost of living in Israel was much lower, people had money from grandparents, and people lived much simpler life styles. All of these things have gone away. We now have the second or third generation of kollel only parents marrying off their daughters and the money is simply not there. There is simply no way that people can afford to pay $150,000+ to marry off their daughter.

The big question is what is going to happen? IMHO this is a much bigger issue then concerts, internet, etc. This goes to the heart of things marriage and family. It is disappointing that more hasn't been done by the Charedi leadership on this issue.

Interesting read about what a glut of Arab single men, unable to marry because they lack funds to marry "properly", is doing to Egyptian society. Two concepts: destabilization and growth of extremism. Many would predict that amongst the Orthodox, the opposite would set in.

Guest Post: Chareidim and Working in Israel

Thank you to Jewish Worker (M. Bluke) for allowing me to use his post which responds to some of notion that is thrown about that charedim want to work and that "the man" is holding them back. Post follows:
------------------------------------------------------------------------------------
Chareidim and Working in Israel from the Jewish Worker blog

The Mishpacha newspaper had pages upon pages of articles about Charedim working. The gist of the articles was that Charedim want to work and that the chilonim/government don't want them.

I would like to give my take on this.

One of the more effective claims that the Chiloni politicians and media have made in the past few weeks is why in Brooklyn can Charedim be doctors, lawyers, accountants etc. but not in Bnei Brak. The Charedi representatives only answer has been discrimination.

There is no question that there is discrimination against Charedim but the fact is Charedim can't get jobs for other reasons. Here are some of the differences that I see between Brooklyn and Bnei Brak.

1. In Brooklyn, Charedim go to real Universities whether it is Touro, Brooklyn College, Queens, etc. These are regular accredited universities with decent reputations. In Israel, Charedim will not go to University. They go to to all kinds of special Charedi programs that offer some kind of degree, the equivalent in NY of going to a place like Devry's. Many employers in Israel want a degree from a recognized University which the Charedim don't have.

2. In Brooklyn Charedim are much more open to the world. Guys who learn in the Mir, Chaim Berlin, etc. follow sports and generally know what is going on. Chafetz Chaim Yeshiva in Queens (certainly considered a Charedi Yeshiva), when they built their new building included a beautiful gym, that would never be done in Israel. They see non-Jews in the neighborhood and interact them. They see women dressed not so tzniusly. Therefore when they go to work, they have something in common with their co-workers. They can talk about sports, politics, technology, or whatever. In Israel, Charedim are very very sheltered. If you live in Bnei Brak, Kiryat Sefer, Beitar, many neighborhoods in Yerushalayim, RBS, etc. you basically hardly ever see a non-Charedi person let alone a woman dressed non-tzniusly. There also is no openness to sports or anything else in the general culture. Therefore, it is very hard for a Charedi person to fit in, they have absolutely nothing in common with the other people and have no idea how to interact with them.

3. Jews in America are stereotyped as smart and non-violent. This helps in the job market. Charedim in Israel are thought of as violent (rioting all the time) and ignorant.

4. In Israel, the Charedi parties are constantly pushing for religious coercion, whether it is not selling chometz on Pesach, no public buses on Shabbos, mehadrin buses etc. This causes the general public to worry that the Charedim are trying to take over and create a Taliban like state. In Brooklyn, there are no worries about religious coercion.

The bottom line is that the Charedim want to have their cake and eat it too. On one hand, they want to have the freedom to educate their children however they want, but then when it comes to getting a job, they want their education to be considered. It doesn't work that way. If you want to join the world you need to play by the rules and one of the rules is education.

A Few Things

The current Yated has a plea for families to purchase Life Insurance written by Rabbi Binyomin Ginsburg. He mentions purchasing it as a "segula" not because it is a segula, but because it might incline more people to do the prudent thing. Such is the state of Orthodoxy I imagine. At the end of the article he writes about a free $50,000 life insurance program offered by Mass Mutual for education expenses. I'm hoping a reader will be willing to check out this program and report back. I've never heard of a free life insurance program that provides more than say $3000 to a customer of a bank, e.g. Here is the information:

Finally, I would like to share information with our readers about a program that is free of charge.MassMutual, an insurance company that sells life insurance, has a program called LifeBridge. This is a free life insurance policy designed to help people pay for tuition after the death of a parent, r”l. Under the LifeBridge Free Life Insurance Program, Mass-Mutual will issue a $50,000 life insurance policy to a trust for a period of 10 years and at no cost to the insured. MassMutual pays the premiums. If the person dies within that time period, the $50,000 is
used to cover the educational expenses of the children. The children have 10 years after the death or until age 35 (whichever is later) to use this $50,000 educational
benefit.

For more information about this program, contact MassMutual directly or feel free to contact Mr. Kahn at 718.436.0022. He will be glad to help in any way he can to have more people protected with life insurance.

In Israel, Rav Shteiman has said it is time to discontinue the vort, and go with a l'chaim following the engagement at the home of the kallah. Perhaps I'm missing some information being only familiar with things in America, but I can't really tell the difference between what people call vorts and l'chaims. Besides my husband and me, I can't think of too many people who have not had an engagement party (my husband will take issue, however, he claims that because our parents met for a meal in which he announced our engagement that we too had a party. . . . .next time one of my kids wants a birthday party with classmates, I will insist that a meal with family is a party :).

I personally am not at all attached to the practice of a vort or l'chaim. I think engagements are best started off slowly, without a bash. It seems extremely logical to me that when cutting expenses, the vort be the first thing on the cutting block. The Simcha Guidelines from about a decade ago also called for only a small l'chaim. I wonder if a decade later, someone else will call for discontinuation or if the financial realities will finally par down on this expense. Time will only tell.

Also of interest is a story in Haaretz as reported by VIN that Badatz has ruled that Chareidim in Israel cannot invest in stocks of Israeli companies. The concerns reported are that Chareidim should not become *partner* in companies that violate Shabbat and engage in inappropriate advertising. I won't even bother to comment that investing does not make on a partner; I actually have my own moral concerns with certain American companies and don't care to invest directly or patronize certain companies. That said, such an announcement is disturbing in combination with the past policies I've reported on. I guess the post He Can't Work, She Can't Work could now, in light of this new pronouncement be titled He Can't Work, She Can't Work, Nor Can They Invest. It seems that each month, we the big fat pocket book, are privy to another report of what Chareidim can't do because it violates religious principal. Worse yet is when leadership complains that Chareidim can't get ahead because of the man. Seriously, it is no wonder that people think about selling a kidney (which is in fact not permissible).

What surprises me most about the Haaretz reports that of the 50,000 Chareidi households, 42% deposit 825 NIS a month in savings plans. According to this exchange rate calculator that is almost $220 a month. There are so many people in America unable to save such amounts monthly. This just seems unbelievable given the unemployment rate and other stats.

Investigate before Jumping on This Ship

YWN reported that Aguda Rabbonim convened to discuss Chinuch Atzmai which is under more financial strain due to a fine imposed by the Israeli court of 5,000NIS per day the school does not comply with the ruling of the courts. The courts became involved in the Emanuel Bais Yaakov schools after accusations of segregation between segregation of Ashkenazim and Sephardim and discrimination against the latter. The gedolim have decried the involvement of the secular court system in Chareidi education and have supported the parents in their actions, rallying behind them. For links to all related stories see YWN here.

When I was the story about the Aguda meeting to discuss the financial strain I can't say my reaction was a nice one. But, not knowing the details of the case, I didn't want to jump to any conclusions either.

My friend Mom in Israel has details of a different case in Bet Shemesh and has kindly posted a transcript of tape in which the Bais Yaakov Principal's remarks to school parents in Bet Shemesh were recorded and later played on an Israeli radio program. What a lovely gem during the Omer. I have never heard such cruelty. There is no possible way that you can build an education on such a foundation. I know no one in the Agudah, but would be more than happy to place this excerpt as translated by Mom in Israel in envelopes to anyone who was at the American Agudah meeting asking them to do some further investigation before supporting Chinuch Atzmai in the Emanuel discrimination case and asking for money from an already struggling American community. This might not be the ship they want to jump on! I certainly wouldn't want to be on that ship.

If you have the home addresses of anyone who was present in the meeting, please send me an email at Orthonomics at gmail dot com. Excerpt follows from the Bet Shemesh principal. See all the links at Mom in Israel for more info.

You, as a mother, are insisting on sending her to a place where she’s not wanted . . . No child wants to sit next to her, no one will be friends with her, no one will go to her house to play, no child will lend her a notebook, no one will approach her at recess, everyone will know that this is the girl, that because of her, we all sat at home for so long.

How can you, as a mother, send your daughter to a place where she is clearly not wanted? not only by me, not only by the teachers, and not only by the rabbi of the neighborhood—all 280 students don’t want her.”


Your daughter will be socially isolated. No girl will sit next to her. No one will invite her over. She’s going to go into a class that has 26 girls, she’ll be number 27. The other class has 32—in either case the class will have an odd number. Your daughter will sit by herself. And in two months when the teacher changes the seating arrangements, your daughter will sit by herself, again.

280 girls are sitting at home. For many of them it’s very hard, the parents are working. No one knows when this will end, I also don’t know. But all of them (kuuulam), did it happily (besimcha). Now if that girl calls on the phone to play, and the mother asks who is on the phone, will she let her daughter play with the girl, that because of her they all stayed home?

She’ll be a museum exhibit. All the girls will look to see who this girl is who caused the commotion. When every [apartment] building has 50 girls living there, what mother would send her daughter to play with a girl that has a “baayah chinuchit” (educational or discipline problem) at home?”

More Economic Terrorism

I find the economic terrorism coming out of the Chareidi community to be particularly infuriating, especially in light of recent reports regarding the employment and state of poverty in this community. The Chareidi entrepreneur and business owner does not just have to deal with the usual headaches of red tape and tax. The Chareidi entrepreneur has to deal with self-appointed Vaadim that look to enforce standards of tzniut through duress. I believe this would be a bigger headache than dealing with just about any other red tape. Even if the business owner has secured permits, completed legal paper, and paid their taxes, the businessman always has to watch their back as idle and unstable men with plenty of time on their hands look to "enforce tznius standards."

Since I've started this blog, I've seen so many stories of businesses attacked by these self-appointed Vaadim. Anything relating to women seems particularly susceptible. In Israel, we've seen stories of clothing boutiques being threatened and even set on fire. A popular vocation for kollel wives in Israel is cosmetician services. But don't dare advertise your business in Modiin Ilit! The kehilla committee, has told publications that they are not to publish advertisements for eyebrow shaping, even if the ad is text only. Pharmacy and grocery stores in Israel face special challenges regarding kashrut demands and specific opening hours. Under normal circumstances the market would dictate things like opening hours or even having separate shopping hours or areas for which feminine products are to be secluded. But the Chareidi business man or the business man looking to establish a store in a Charieidi area knows that demands must be met even if the market might dictate a different policy. American pharmacy owners in areas like Boro Park or Lakewood also face similar challenges.

Even in America, a boycott was announcement when the owner of sheitel shop on the same street as Yeshiva Chaim Berlin refused the demand of some man to remove framed pictures (I guess this is better than requesting the removal of real live women walking around in the same sheitels).

So what is the newest report of economic terrorism? It regards an ice cream store (!)-- not a sheitel shop, not a women's education program, not a call center manned by Chareidi women, a cosmetician advertising eyebrow shaping services, a women looking to sell clothing, a woman looking to teach the arts to other women and girls, or a pharmacy being told to keep the pads out of public view or remove/cover a picture of a teen star (in a sheitel of her own no less).

As per this report published today, a new ice cream and candy store, Zisalek of Geulah, has found itself in the middle of a hashgacha battle and has faced protests regarding tznius, hashkafa, and ruchniyus. The store owner met with protesters and agree to institute the following to appease them:

1. The store won’t sell on Erev Shabbos after 1 p.m. ice cream that can be eaten immediately, such as ice cream cones, and will only sell at that point packaged ice cream that can be bought for families for Shabbos.
2. The store will not open on Motzoei Shabbos.
3. The store will close at 10:30 p.m. each night.

The store owner wouldn't agree to have female employees only sell to females and male employees only sell to males. (The quick way to bankruptcy!)

Running a business and making a profit is very difficult work! Profit margins in nearly every industry are normally very slim and adding demands that increase the most costly area of business (payroll) is sure to topple a business. To place demand upon demand upon Chareidi entrepreneurs looking to support their families in dignity is nothing but Economic Terrorism. The market will decide if it is in the best interest of a store to close at 10:30pm! The market will decide if it is in the best of the store to have an employee scooping ice cream after 1pm on Erev Shabbat!

I think it is obvious that self-appointed tzniut vaadim aren't the least bit interested in the financial health of their communities. (I'd argue that being self-supporting is integral to tzniut/dignity. "Hustling" certainly lacks dignity). Leaders, both lay and Gedolim, who are interested in the financial health of the community MUST tackle this issue with courage and allow businesses to function and prosper.

Required Reading: A Smorg of Economic Stats

The Jerusalem Post has a very interesting editorial titled Downhill, by the numbers. This report looks at numerous economic indicators in Israel, only one of which is particularly positive. I'm always amazed how new articles on my radar seem to continue a subject from a different post. This post provides more background on the outrageous statements made by Gafni which I posted about on Friday, In Other Words. . . It's the Man's Fault.

The article examines a number of economic indicators shared by the researcher Prof. Ben-David of the Taub Center for Social Policy Study who believes that the "findings show an unsustainable burden is being placed on the fewer and fewer Israelis who can contribute effectively. Reform is urgent, and it must begin with education."

Here are some of the economic indicators of note from the article:
*GDP: Israel had caught up with the G-7's rising rate by the 1970s, but has been slipping steadily behind over the past 30 years or so.
*Brain Drain: For every 100 British academic scholars at work in Britain, 2.1 British scholars had moved to the US. For France, the number was 2.9. For Italy, 4.2. For Canada, 12.2. And for Israel, 24.9.
*He gave me worrying figures on labor productivity – Israel had caught up with the G-7’s rising rate by the 1970s, but has been slipping steadily behind over the past 30 years or so. And then he described the related fall-off in GDP – the data that essentially governs our living standards: *Welfare: In 1979, 26 percent of Israeli families lived below the poverty line before tax and welfare adjustments. By 2008, that figure was 32.3% – a vast increase compared to the OECD countries that are his barometer, leaving Israel second only to the US in terms of the numbers reliant on the overburdened state system.
*Employment: Re able bodied men aged 35-54, non employment in the OECD averages 11.9%. Spain the worst afflicted at 14.5%. In Israel, the rate is 18.9%. In that age group, 27% of Israeli Arab males and 65.1% of haredim are unemployed.
*Growth of the Arab and Hareidi Sector: 1960, 15% of kids going into primary school came from the Arab and haredi sectors. By the 1980s, 26%. In 2000, 40%. In 2008, 48%. (The 2040 projection is 78%, but I prefer sticking to the known, not the unknown).
*Employment for those who don't complete high school: In th 29-54 age range, fewer than 10% of Arab women in that demographic have work while 70% of their counterparts with a degree have work. 90% of Arab men and non-hareidi Jewish men and women with degrees have work.


Ben-David points out that these stats are worrying in terms of sovereignty as a nation. Ben-David had a chance to meet with Porush to present his findings and address his concerns regarding education. According to Ben-David: "Porush responded that if only the haredim were exempted from IDF service, more would join the labor force – which is not born out by the data – and he disagreed on the haredi sector’s educational needs. His response was unacceptable. It won’t work."

The positive indicator is one that the religious community and the hareidi community can claim a great deal of credit for: "The average woman aged 15-49 in the OECD countries has 1.7 kids, he noted, with New Zealand topping the league at 2.2. The average Israeli woman in that age-range has three kids."

Read the entire article for Prof. Ben-David's commentary. Also, if you want, see Haaretz which also is covering some of the data.

In Other Words. . . It's the Man's Fault

Note: There is another posting made today also. Shabbat Shalom to all my readers.

Hat Tip: The Wolf who has just about covered the economic aspects of the post.

News Flash: Israeli Chareidi leadership believes in the economic fallacy of a limited pie, whereas high income earners and the wealthy are keeping the poor poor. There is no recognition of lack of *marketable skills* or putting the cart before the horse as families try to play catchup they first have a (large) family and last plant a vineyard. Chazal were observers of the human condition. These leaders, not particularly.

In other words, the state of poverty in the Chareidi community can all be blamed on "the man." So it appears we have our own [insert name of self-proclaimed or elected leader]s who are completely unwilling to take a good look in the mirror and who, worse yet, have NO trust in the people they claim to represent. I'd go so far as to say that they believe those they represent are incapable.

It is very painful to watch this community being led off an economic cliff. It is even harder to see that their own are leading them to the precipitous. Here are the money quotes:

"The country is lying to its citizens. Once again it has been shown that leaving the ranks of welfare recipients and joining the job market does not change the situation and people who work very hard for their living are unable to make ends meet."
"The problem is especially acute in the chareidi public. The state does not recognize the years of yeshiva and seminary study as it recognizes the years of study of its secular citizens. As a result both husband and wife who work earn paltry salaries, and are unable to extract the family from the cycle of poverty. On the other hand there are people earning as much as an entire neighborhood."
"We need a far-reaching change and a totally new attitude. There are enormous class gaps in this country that will turn into an existential social problem."
"Going to work solves nothing; that's all nonsense. In the State of Israel, today someone who wants to get out of the cycle of poverty has to network with the elites and the power centers just to get a decent salary that will really enable him to make a respectable living." [So start by earning an "unrespectable" living as our sages did].
"His dismissed out of hand claims that the chareidi public is to blame for a state of poverty rooted in a failure to enter the job market."

The one this that Gafni has right is this:

"These class disparities have led to very difficult situations throughout history in all places. . . . . " But I imagine what he has in mind isn't at all what I have in mind.

Selling a Kidney?

Hat Tip: rosie and other readers of this blog (thanks)

According to a Ynet article published on VIN News, a psak is in that it is in fact not permissible to sell your kidney to marry off a daughter and that families. There is also a report of a newly married kid who sued his father-in-law for funding. No, this is not Purim Torah, although I'm a bit skeptical regarding the newspaper report. And yes, I'm continually surprised that just when I thought I had blogged about the last ridiculous thing something even more ridiculous comes along to eclipse it.

The shaila of whether or not one can sell a kidney is naturally getting the most play (e.g. what is the plan once there are no more kidney's to sell?), but the real subject of interest should be just why leadership is so woefully disconnected from the state of the union and simple economic reality. It is reported that Rab Eliyashiv is "mortified" by the financial state by the yeshiva students' families and suggests significant cutbacks on weddings rather than chasing after wedding funds. As per the article, Rabbi Yehuda Leib Steinman has called those who encourage young men to make financial demands "murderers" who jeopardize their bride's parents health and future. And the Rosh Yeshiva of Yad Aharon appears upset that fathers have to leave the beis medrash to "seek funding" for their undertakings and that the situation must be changed immediately. The way I read between the lines is that he'd rather the parents not have to "fund raise" so they can remain in earning. But, presumably, the money has to come from somewhere.

What I'd like to know is why is the leadership finds the financial state at all surprising? As far as I am concerned, the writing has been on the wall for a long time coming and it is an open miracle that the financial situation is as good as it is. The policies of the leadership/those who surround the leaders, accepted by the general public, are simply disastrous. I don't have my finger on the pulse of the community, but I can imagine that many are reaching their breaking point and are ready to boil over. A shame that a greater level of normality isn't being introduced. Rather, each month it seems we hear of more restriction. A shame because desperation rarely leads to good.

Oops, The Model Is No Longer Working

A very interesting article on VIN that has hardly any comments about the impending Chareidi Housing implosion. An actuary could have pointed out that the "cash gemach" model isn't fiscally sound.

Speaking of other unsound plans, I recently read some comments regarding cash gemachs that people lend to, sometimes in order to shield assets, and others borrow from to pay bills. I have no idea what type of internal controls exist regarding asset protection, to say nothing of yashrut. I don't think my readers would consider such a fund, but I think it is incumbent on the rest of of to point out the obvious: co-mingling money in informal funds carries tremendous risk. "A fool and his money are soon parted." If you want to contribute to a free loan fund, do so. It is a mitzvah. If you want a checking account, head to your local FDIC insured bank and open up an account.

And speaking of other plans that don't work, I've recently seen print and Internet advertisements for a "life insurance" plan of sorts. Groups of frum people are pooled together and if someone passes away, each member's credit card is charged $6 per orphan to alleviate the crisis. The sentiment is lovely and carries plenty of endorsements, but note that the plan is NOT endorsed by actuaries. So much effort is placed into these plans, but they aren't fiscally sound (see CC discussion prior to the launch of this program). I simply just don't understand why tzedakah funds can't be used to help those with less purchase real life insurance plans from a reputable company. Less risk, same intention. Although the organization is honest that this is not a life insurance plan, I can easily see it being construed as a plan of sorts. I understand that many people who would not be inclined to purchase life insurance might be tempted to use their ma'aser dollars and join this plan. But ultimately I think we would be better off to educate people about the importance of life insurance and possibly help those with less purchase a plan.

"Talmidim are Fuming"

I referenced a teachers strike in 2008 and here we are at the end of 2009 and I am referencing yet another strike, this time in Bnei Brak. After six months of non-payment the school's rabbonim simply didn't show up to class and apparantely the " 'talmidim are fuming' at the fact the rabbonim have decided to strike."

What a mess. Perhaps now is a good time to introduce the talmidim to the basics of economics so they fume productively.

Potpourri: Chanukah Gelt, Fundraising, Lending, and Fraud

---The time has come in which schools and Parent Teacher Associations start collecting for holiday gifts. I turned over my check last week and the money is being handled by the president of the PTA who is picking out gifts for the staff and will be letting us know shortly what was collected and what was gifted. School administration is uninvolved with collection and distribution of the funds and contributions are optional. Thankfully we were able to contribute the modest amount requested.

In other schools, the dance is a bit different. Years ago, a friend of mine told me that the Rebbes in her children's school go home with thousands of dollars each Chanukah. In her school, gifts are given to the Rebbes directly by parents/students in a custom known as Chanukah Gelt. Let us leave aside the tax issues for a moment (I do believe this money should be processed through payroll and subject to normal with holdings) and consider the inequity such a practice could potentially create. This custom, as well as the expectation of tipping camp counselors to increase their pay, are problematic and create plenty of animosity.

---The Jewish Standard has another article on the community funding model . I'm glad some people are more optimistic than I because being told that a large and growing communal fund isn't going to lower tuition, but rather just stem the tide of future increases isn't particularly encouraging. I mean, how much higher can tuition go?

The reader who kindly sent me the story informs me that the lowest listed tuition for a school funded by NNJKIDS is $15,000. After five months of fundraising, eight elementary schools received money each received a little over $22,000. There are still many influential people who believe that more fundraising is the answer to communal issues. And certainly where communal fundraising helps the schools communicate, there is a positive benefit. But, as far as I am concerned, the only way to get to the bottom of the issue is to shrink the infrastructure. Meanwhile, I'm told that the infrastructure continues to expand at a multi-million dollar cost.

---Meanwhile, the Jewish Worker asks an important question based on a Mishapacha article, namely are (money lending) gemachs harmful? I do believe there is a prohibition in extending a loan for which payment is simply impossible. Yet in Israel, running from gemach to gemach is a known sport. Borrowed money is known to play into increased costs. I read an interesting article recently in an economic publication that made the argument that had mortgage borrowers been required to place a traditional down payment on homes, there would not have been a bubble to burst.

Here in our own little bubble we are seeing that unsustainable spending habits, fueled largely by credit, have pushed the cost of Orthodoxy into the stratosphere. The extension of credit isn't being used to fund new businesses or learning vocations. It is mostly being used to fund consumption. A return to the (very Jewish) concept of thrift coupled with an avoidance of debt would be most helpful in restoring some economic sanity. It is time to leave this culture of debt behind at the individual level and the organizational level. See a previous post of mine: A Plan that Starts with Debt isn't Must of a Plan.

---Remember that offhand comment from the 5Towns Newspaper Editor to the visiting Rebbe about laundering money to the Eida faction through American schools? Well, it seems that someone is one step ahead because something fraudulent (or is more tzniut language "not nice") is going on in Yerushalayim as Education Ministry officials have discovered that 20,000 Eida Haredit children's names have been used by other Haredi schools that do accept "Zionist money." I'm not quite sure how those names and identification numbers ended up in the hands of the other G-d fearing administrators, but something is definitely fishy. The Eida has proclaimed that they are "aware of the phenomenon." Nevertheless, they refuse to cooperate in the investigation out of ideological motives. I guess theft isn't tzniut or Shabbos, so it isn't important.

Strike 2: Laundering it Kashers It?

The 5 Towns Jewish Times Times Editor has published an interview with the Toldos Avraham Yitzchak Rebbe and his Rebbitzen. The article came off sounding a bit like a free public relations piece as the trip stirred up controversy and scrutiny. I have no interest into covering subjects other bloggers are likely covering including whitewashing the opposition to the Medinah. But, I can't help but declaring "Strike Two" for the editor over this exchange (see Strike One here). Talk about twisting yourself into a pretzel.

One area in which this is played out is in chinuch—the education system. This sect, as well as others, refuses to take money from Israel’s Education Ministry for their schools, because they do not want their Torah studies financed by a government that openly and deliberately violates Shabbos. Therefore, their institutions are seriously in debt. And that’s why they are in New York now, to raise money for the considerable education system that they administer.

I suggested to the Rebbe that since he was here in New York seeking vital funding for his educational institutions, perhaps we could arrange for the Israeli government to send us—here in the Diaspora—the money, and then we could in turn give it to his organization. The Rebbe said, with a smile, that itsounded like a good idea, but they have not yet encountered a person who can successfully effectuate that type of arrangement.


So if you take "unkosher" money and send it through a third party it is magically transformed into kosher money. Don't strain any muscles trying to get yourself out of that pretzel!

The irony of the editor's comments is incredible given this recent poll on the 5TJT website. The poll asks readers: "When comes to the issue of Yeshiva tuitions, what is the best formula for the future?" The four choices are:

1. Parents should pay full tuition for each child
2. Parents should pay whatever they can afford
3. Yeshiva education should be free and supported by community
4. Public education funds should be able to be used for Yeshiva education

Granted the choices don't have a fully array of choices, but the overwhelming number of those who have voted in the poll have voted for choice #4, receiving public education funds for a Yeshiva education.

Receiving public funds beyond what is already received (and it isn't nothing in the state of NY where there is busing, remedial tutoring, and Priority 7) is a pipe dream. But while the community dreams of vouchers/public funding, the kehillah is asked to send limited funds that are desperately needed at home outside of the kehillah so that a sect that refuses government funding of their schools can pay off their debts!

It is time for Synagogue Boards and Community Rabbonim to cut a stop to traveling contingents that roll through town and leave with funds another banquet can't raise. Perhaps it is high time to tell them to jump on the solution that our own parents are salivating over. For us it is a pipe dream; for them a realistic possibility.

Support local institutions first!

He Can't Work, She Can't Work

Shas, in an effort to improve employment rates and the "[lack of] parnassah" crisis in the Chareidi community, gets the government to agree to a pilot program of a call center Teleall serviced by Chareidi women. The call center serves healthcare organizations and pharmacies.

The women at the call center have received "sordid" calls related to men's (sexual) health and this has resulted in this declaration:

“Because of modesty issues rabbonim do not recommend women work outside of the home – only in cases where the financial situation is pressing and the woman needs to go out and get a job. Such cases require halachic clarification and a she’elas rov.”

The woman who received a call about virility drugs, didn't know the nature of the drugs, and hung up on the caller when he described them, was told to quit her job because of gilui arayot issues.

This isn't the first story declaring the evils of (Israeli Chareidi) women working. Personally I think the women should take on this chumrah psak of the year with great zeal and let the chips fall where they may. Perhaps next time the askanim will concentrate their efforts on the men.

(Note: I do not wish to comment on the relevant halacha, just the ridiculousness of setting up women in jobs and complaining about the jobs being inappropriate).

Burning Down The House

Seems everyone is talking about the riots going on in Israel. One moment a certain element was rioting about this, and the next thing they were rioting about that. Personally, I don't think they really care about what they are rioting about, although some of the issues provide an excuse of sorts.

It seems that most are at least somewhat surprised by the events on late. I am well aware that many of these acts are not new, but the scope seems larger and many are concerned and want to see change NOW! Some are calling for boycotts of Eida certified products, others are trying to get gedolim to speak out.

While I am enraged and saddened by the pictures of young men being egged on by older men and young children (!) burning down the neighborhood, destroying property, and creating a living hell for innocent residents and passerby, I have to say that the behavior simply does not shock me any longer. In fact, I've come to expect it just as I expect a few police cars to be torched and overturned if/when the Lakers or Raiders win a championship. (Although I don't expect any Kobe to step in and take their personal funds to replace the damaged equipment).

Wait a second, did she just say that she expects this behavior from any Yid? Has SL fallen off her rocker? (Perhaps). Yes, you hear me correctly, this behavior no longer surprises me (it did at one time). In fact, I find it (at least somewhat) predictable and a result of a failed experiment cracking for all to see. I'm sure an aspiring cultural/behavioral economist or economic sociologist could write an fascinating dissertation on the subject.

Aimlessness + underemployment + poverty + dependency on government and tzedakah + a one-size-fits-few education system + children raised in herds (the most disturbing pictures to me are pictures of young boys out watching the festivities with nary a mother in sight) + a weakened family unit + overseas teenage and post-teenage boys with little supervision thrown into the mix + "the man" [state] who is out to get them + close living quarters + lack of strong leadership (this Rabbinic statement certainly wasn't unequivocal or forceful) + lack of accountability (the government might deport the overseas trouble makers and they have finally decided to file civil suit again the vandals. . if this happened in America I have no doubt police would have went in in riot gear) = a likely potential for a subculture to destroy itself from within. And that is what we are witnessing.

Years ago, I think I viewed Orthodox Jews from left to right as part of a continuum, the speed of media and the images make it rather clear that much of the affinity is perceived. It might be a terrible thing to state during the three weeks, but I don't feel as there is much in common between my community, or most other American Orthodox communities for that matter, and the Mea Shearim community.

But, saying that wouldn't be fair either. It is clear when you read comments on any VIN article (or YWN article, although that "new source" basically steers clear of most articles that put the Yeshivish/Chassidish community in a bad light) that the concept of dan l'chaf zechut, an important concept indeed, can be used to excuse nearly any behavior. And, not just excuse it, but even glorify it. Sometimes I think to myself, do you have to be accused of abuse to be labeled a selfless tzadekes or be accused of money laundering or fraud to be labeled a true tzadik, someone with a great helech in olam haba? And lest you think that it is only VIN or YWN commentators that can twist themselves into a pretzel, have a bochur over and you might be surprised just how a neighborhood boy can take a behavior that a simpleton like me views as unquestionable wrong and it becomes not only permissible, but even a kiddush Hashem.

To round off this post, I think that many of the underlying factors that can cause a subculture to degenerate to the point of destroying their own neighborhood. We have a bit more balance here, although plenty of the pieces of the equation are contributing to issues here at home, but the fact that one can expect a riot over nearly anything should give one pause.

Add your comments. Is bad behavior something you have come to expect, or are you surprised?

Why Should Anyone Invest in a Bankrupt Agency?

Hat Tip: Charlie Hall

The Yeshiva World is reporting that the Chinuch Atzmai school system (an Israeli network of private religious schools founded in 1953 that teaches almost exlusively Talmud Torah) is about to bankrupt. The report states that the school system has debts of $3 million and HaRav Eliyashiv and HaRav Aryeh Leib Shteinman are requesting the the "tzibur must come forward and meet the needs to keep the critical operation alive."

Let's not forget that this school system receives funding from the Israeli government and has always received funding from private donors and has long been a priority of many donors in the US, Canada, and Europe.

Donating to a school system that does not prepare its (male) graduates to support themselves and their families is not a priority of mine. But, I'm not here to comment on that.

I'm here to ask why in the world I, or anyone else, should throw good (tzedakah) money after bad(ly) managed money? Where is the modified business plan? Where is cheshbon of what when wrong and how it will be fixed or if it can be fixed at all? Unfortunately, there is none.

A few months ago I received a slick and busy brochure telling me that a tzedakah organizations serving the same population was facing mounting debts and and a statement by gedolim that every family is obligated to give a minimum of $180. The brochure is slick and glossy and thick, but it does little to reassure the donor that the money isn't going to be sent into some deep hole.

When a car has proven itself to be a lemon, you scrap it and start again. But, in a world with little accountability, no one knows that the car is a lemon and money will keep getting pumped into a black hole (sorry I'm so pessimistic today. . . .but I am quite concerned about fiscal erosion in Torah communities, from left to right).

So, the beat goes on.

Get These Hoodlums a Job

Rabbi Horowitz is circulating a petition to sign regarding the violence in Beit Shemesh. I wish him and the peaceful citizens of Beit Shemesh hatzlacha. But what is really needed is to get these "men" some jobs. If these men were at work, they simply would not have time to spray bleach, set shops ablaze, or beat people up. 'Nuff said.

Hareidi Buying Block

Hat Tip: Ari Kingsberg and Bob Miller

Like I have said in the past, I shy away from discussing Israeli Orthonomics, or Hareidinomics as the case might be, because I am wholly unfamiliar with the people and structure of the communities therein. But that doesn't mean that articles about such do not interest me. They most certainly do, especially as the Orthonomics of Israel and America intertwine.

Per this JPost article, Chareidi Yeshiva schools and Bais Yaakov schools are teaming up to form a consumer buying bloc, eliminate the middle man, and force down prices by up to 30%. This initiative is not a religious one, but a purely practical one.

The idea of a buying bloc would seem to be a very good idea, but I have to wonder if the idea will translate into a succesful model. Initiazling the idea will require a tremndous investment of man-power, business acumen, patience, and (yes) money (!). Seeing the return on investment, if they plan ever gets off the ground cannot and will not happen overnight and that could detract from the great amounts of an investment of time and money that will be required.

I will be watching and I think the entire US community should be watching too as forming buying blocs for American Day Schools and Yeshivot is an idea that has been floated and could be piloted.

But in the meantime, I have a few thoughts that I'd like to discuss. The first of which is the mission statement. It seems that the initiator of the plan has a lofty goal, but perhaps it is far too broad. It seems that the goal is not only to benefit the hareidi educational system, but is to benefit the average hareidi household (see mention of sodas and diapers). To keep the initial momentum going, I believe one must be able to demonstrate that the objectives are being achieved or tangible progress is being made to achieve those objectives.

Secondly, I have to wonder if any marketing research has been performed. While the community is sizable, is the buying power as sizeable? El Al was sited as an example of a success. But plane tickets and diapers or soft drinks are far different products (btw-would it really be a good idea to make liquid sugar an even less expensive item?). Judging from the increasing number of solicitations that I receive, the severity of the solicitations, the perceived desperation, etc, I have to wonder if the buying bloc is as significant as the leaders would believe.

Lastly, what really caught my eye was this paragraph about Israeli demographics:

"Every fourth baby born in Israel is haredi and so is 52% of the Jewish population under 18 year old."

I'm scratching my head trying to figure out exactly how large the hareidi population is relative to the entire population (See: Cross-Currents for more scratching) or even if these statistics are even accurate. But one can't help but wonder such demographics mean for the Israeli hareidi community as a whole and the American Orthodox community.

Your thoughts please.