Ehud Olmert to Increase Welfare Spending
Morgan Stanley reiteras much the same analysis that I did a while ago, namely that poverty in Israel is mainly concentrated to 2 groups: Arabs and ultra-Orthodox Jews, and that their poverty is largely the result of their own lifestyle choices, which is to say they have a lot more children than Israel's secular Jewish population. This means that their poverty is self-chosen and that they have really no right to demand that secular Jews should compensate them for this. But since Arabs and ultra-Orthodx Jews vote for parties- the distinctly Arab and ultra-Orthodox parties as well as the left-wing Labor and Meretz parties- that demand increased welfare spending, this is what could happen anyway, especially since many secular Jews feel a misguided willingness to agree to these demands and also support Labor and Meretz.
Morgan Stanley also notes that welfare spending have been counterproductive in solving the fundamental causes of poverty and that Netanyahu's reforms have had positive results in the form of higher growth and falling unemployment and that these new policies risk reversing some of these positive results.