Dr. Karnit Flug
Haredi Knesset members slammed comments made by the Bank of
Israel governess, according to which rising birth rates among haredim pose a threat to the growth of the Israeli economy.
"In a functioning country, a clerk, no mater how
high-ranking, should be fired after making such a severe statement," Shas
Chairman MK Aryeh Deri said of Bank of Israeli Governess Dr. Karnit Flug.
Flug recently claimed that an ageing population coupled with
the increasing birth rates among haredim and Arabs are exacting a toll on the
growth rate of Israel's economy, a trend she warned would increase in severity
in upcoming years.
According to the Shas leader "the Bank of Israel
governess did something that should not be done, throwing garbage and shame on
entire sectors of Israeli society, only to excuse to the state of the economy
she is responsible for. It is unconceivable that a public servant will make
such horrible statements, even if it is now in fashion to attack the
haredim."
Seditious and insidious campaign
United Torah Judaism Knesset members also had harsh words
for Flug. "It is a very serious matter when the seditious and insidious
campaign against the haredi public has reached the allegedly professional
echelon," MK Meir Porush. "It is very sad that as part of the spirit
of incitement you can throw all of the country's ills onto the haredi public."
His fellow party member, MK Moshe Gafni sent the governess a
clear message: "Before making such statements, I recommend she inquire
into how much of the haredi public want to work and what are the obstacles
being placed in their way by the government and private employers.
"The government isn't lifting a finger… and has
consistently refused to promise benefits through legislation. Even those
haredim who do have the proper training and paper work get negative responses
from government authorities because they are haredim. Before she points fingers
she should check her own backyard."
MK Yaakov Asher, also from United Torah Judaism, said
"this isn’t economics – its politics… I would like to remind the governess
that the role of the Bank of Israel is to serves the public, not to change the
public to better fit the economy. She should examine the bank's policies… and
the fact that more and more people are on the threshold of poverty in wake of
the never ending budget cuts against the weakest sectors in Israel."
Concerning trends
Governess Flug's comments were made in a conference held by
the Israel Bureau of Statistics after growth dropped to 2.8 percent at the end
of 2013 - down from a 3.8 percent rate the previous year. The governess claimed
that the main reason for the stifled growth was demographic changes in Israel,
first and foremost the growth of the haredi and Arabs publics, as well as a
rise in life expectancy.
As a result of these trends, Flug claimed the labor force's
growth rate will continue to decline in the upcoming years, from 2.2 percent to
1.2 percent. The process will be accented by a decline in birth rates among
working populations and a rise in those of the less employed.
Flug stressed that if countermeasures will not be taken,
growth will decline because a lack of high-quality manpower.
"These two trends (an ageing population and a growth of
the haredi and Arab populations) will take a 1.3 percent toll on Israel's
annual growth rate unless very effective policy steps will be put into action."
In a slightly more optimistic tone, Flug noted that a slight
improvement has been registered in employment rates among haredi men: "If
this trend will continue, it will mitigate the declining growth rate. However,
if parallel steps are not taken to improve human capital, the pay off will be
low."
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