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.
According to Ben-David, nearly one in five Israeli men between the ages of 35 and 54 — a group that he believes has "no excuse" for not working — are not part of the labor force. That's about 60% higher than the average among nations in the Organization of Economic Cooperation and Development, an international forum fostering market-based economies that Israel joined Monday.
Officially, Israel's unemployment rate is about 8%. But that doesn't include Israeli citizens who are not trying to find work, either because they feel disenfranchised, such as many Arab Israelis, or because they've chosen a life of state-subsidized religious study, such as many ultra-Orthodox Jews.
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http://www.latimes.com/news/custom/topofthetimes/topstories/la-fg-israel-idle-20100511,0,6313284.story