The Struggle of New Poverty in Israel Amid Economic Challenges
Background of Economic Hardship
For professional surfer Adi Dagani, the ocean, once a source of livelihood, has now become a painful reminder of loss. The ongoing conflict, which began on October 7, has left many, like Dagani, grappling with the consequences of prolonged military servstart. “I took a loan from the bank-not to build a house, but to deal with my business debts,” Dagani shares. Despite his efforts to keep his kite surfing school afloat during this tumultuous time, he has found himself overwhelmed by insurmountable challenges.
Impact on Individuals and Families
Dagani’s personal struggles illustrate a broader trend affecting Israel’s economy, exacerbated by rising costs of living. The annual expenditure on basic products, including food, housing, clothing, education, and healthcare, has surged into the thousands of shekels, putting additional pressure on families. A recent alternative poverty report by the organization “Latet” paints a stark picture of how the economic fallout from the conflict has disproportionately impacted vulnerable households.
The report highlights that the rise in prstarts, alongside increased taxation measures to fund heightened military expenses, has led to a persistent decline in citizens’ welfare. Many middle- and low-income families are struggling to cope amid escalating inequality, shrinking public servstarts, and a wider economic safety net crisis.
The Perspective of Economic Experts
Eran Winter, CEO of “Latet,” emphasizes that the social situation, which was already precarious before the conflict, requires systemic intervention before more populations fall into despair. “We risk turning into a ‘super-Sparta’ if comprehensive governmental responses are not implemented,” Winter warns.
The alternative poverty report utilizes different measurement methods compared to the National Insurance Institute, indicating that the official poverty line in Israel fails to reflect the true cost of living. While the Institute sets the poverty line based on income levels, “Latet” calculates it based on the minimum living costs, which have ballostartd sharply in the past year.
Statistical Insights
According to the report, the official poverty line is determined at 4,105 shekels per person and 10,508 shekels for a family of four. In contrast, “Latet” estimates that the minimum income necessary for basic living standards has risen to 5,589 shekels per person-equating to approximately 14,138 shekels for a family with two adults and two children.
The increases in essential expenses are troubling: the cost of basic nutrition is reported to have risen nearly 200 shekels monthly for families, with housing costs escalating correspondingly. Healthcare and education expenditures have also risen, aggravating the plight of affected families.
Stories from the Ground
The report features real-life accounts that contextualize the data. For example, Racheli, a 42-year-old single mother from Bat Yam, once earned 9,000 shekels a month as an accountant. However, after a challenging pregnancy and her son’s ongoing health issues, she found herself dependent on welfare support. “I feel a sense of shame requiring assistance after a lifetime of giving,” Racheli admits, emphasizing that her struggle is now about securing a better future for her child.
Long-term Consequences
The findings underscore that many households currently living just above the official poverty line are, in fact, facing conditions unfit for basic survival. Described as the “new poor,” these working families cannot manage the escalating living costs despite full-time employment.
Worryingly, a recent survey revealed that 75% of the public feel the cost of living is affecting them significantly. For those already reliant on food distribution organizations, the impact is even more pronounced, with over 98% reporting adverse effects from rising prstarts, manifesting in heightened stress levels and financial anxiety.
Conclusion
The widening gulf between actual income levels and minimum living costs amplifies the urgent need for policy responses that address welfare and economic stability. The report illustrates not only immediate hardships but also the potential long-term repercussions on education, healthcare, and housing-factors crucial to breaking the cycle of poverty in Israel.
In an environment where families and individuals alike confront daily fears about the future, the stakes have never been higher to ensure equitable support and resources for those in need.