After every war in history ended, the main goal for leaders was to find ways to revive an economy reeling from the massive increased costs of running a war.
One of the most famous examples is after the 17th-century English Civil War. The victor in that war, Oliver Cromwell, looked to bring immigrants from the Netherlands’ Sephardi community, known for its financial acumen, to reinvigorate the English economy.
The social, political, and economic cost of inviting this new fledgling Jewish community to London was vastly overshadowed by the subsequent benefits they brought.
During or after a war, it is obviously a natural reaction to try and cut costs when spending has been so great and budgets are extremely tight. However, good economists will look to find areas where minimal investment can achieve maximal financial gain for the nation.
As we look ahead to the 2025 Israeli budget, the proposed reductions in benefits for new immigrants raise serious concerns about the long-term implications for our nation. At a time when Israel’s economy requires growth, undermining the support system for new Israelis is not only shortsighted but detrimental to our collective future.
New immigrants bring with them a wealth of potential. Each oleh contributes not only to our workforce but also enriches our society with diverse perspectives, skills, and entrepreneurial spirit.
Historically, the State of Israel was built on and has thrived on the contributions of its new citizens, whether through innovation in technology, economically opening new channels of trade, revitalizing industries and communities, or adding cultural depth.
By reducing the financial support and benefits for these individuals, we risk stifling their ability to integrate, thrive, and ultimately contribute to our economy.
The decision to cut benefits comes at a time when many olim face significant challenges upon arrival. Adjusting to a new culture, learning a new language, and finding employment can be daunting tasks, even more so during war.
Investing in human capital
Financial support is not merely a safety net; it is an investment in human capital that pays dividends in the form of economic activity, tax revenue, and new sources of funding. Cutting these benefits sends a message that we do not value the contributions of new immigrants, an unwise stance in a country built on immigration, contribution, and the strength of its diversity.
Rather than slashing support, we should consider alternative approaches that reaffirm our commitment to olim.
One solution for Russian-speaking Jewry would be to reopen Nativ offices, which historically facilitated the integration of new immigrants from the former Soviet Union by providing them with the resources, guidance, and community support they need. These offices have played a vital role in helping olim navigate the complexities of Israeli society, ensuring that new immigrants have access to essential services and opportunities.
It might be prudent to specifically open temporary representative offices in Germany, Hungary, Poland, and Georgia – countries where thousands of Ukrainian Jewish refugees temporarily reside.
Additionally, increasing financial support for new immigrants can foster an environment where they can succeed.
Rather than viewing support as a burden, we should see it as an investment in our shared future.
Enhanced benefits can enable olim to focus on job training, language acquisition, and community involvement, which are crucial for successful integration. According to previous studies, new immigrants contribute many times what the country invests in them. For example, on average, an American oleh who maintains a productive professional life is estimated to bring an economic benefit of approximately $1 million to $1.5 million over the course of their lifetime.
The message the government sends with our budget decisions is crucial.
The State of Israel is the national homeland of the Jewish people. Especially since the massacre by Hamas on October 7 last year and the massive increase in antisemitism globally, more and more Jews are seeing Israel as their home, with a 100% increase in interest in aliyah being expressed around the world.
Especially with Jew-hatred at record levels in the West, and increasing numbers of Jews looking to Israel as a safety net, now is not the time to abandon them. Now is the time to embrace them even stronger.
If we want to build a thriving society, we must invest in every individual who chooses to make Israel their home. The economic potential of each oleh is immense, and it is imperative that we nurture that potential rather than diminish it.
As we follow the 2025 budget discussions, we should reconsider the implications of reducing support for new immigrants. Investing in their future is an investment in Israel’s future and economy.
It is time to recognize that each new immigrant is not just a statistic but an essential part of Israel’s ongoing story of growth and resilience.
After, or even during, our seven-front war, it is the natural, wise, and Zionist response.
The writer is the chairman of the Center for Jewish Impact and co-founder of the Technion-Israel Institute of Technology’s Anières Mechina scholarship program. The initiative creates pathways for young, Jewish olim from challenging economic backgrounds to become leading engineers poised to play a vital role in shaping the future of Israel. The writer is also the former CEO of the World Jewish Congress, and former CEO and chair of the Board of Trustees of World ORT.