Welfare system could cause Israel to collapse, economist warns (Page 2 - Los Angeles Times)
But Ben-David said the government has relied too heavily on a quick fix. With heavy lobbying from ultra-Orthodox parties that often prove crucial in forming government coalitions, Israel has increased welfare payments fivefold since 1970, while the standard of living has doubled, he said.
Nearly a decade ago, Prime Minister Benjamin Netanyahu, who was then finance minister, won praise for slashing welfare payments, including monthly per-child allowances. But last year Netanyahu, in a nod to his right-wing coalition partners, agreed to nearly double some child allowances.
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