inflation

Concerns over inflation

Last fall, the Jewish Federation of Greater Vancouver surveyed the impact of inflation on its community partner organizations. As with many recent reports on the effects of rising prices, the feedback was sobering, said Shelley Rivkin, vice-president of global and local engagement at Federation, which conducted the survey.

When asked about how the rise in food and fuel will affect their ability to provide the same level of service, 95% of the organizations that responded said they were either concerned or very concerned about inflation. A similar response was returned when community members were asked about paying school, camp, synagogue or Jewish community centre membership fees.

For social service and housing providers, the main concerns were the level of care, due to reduced staffing; the number of affordable housing units available; food programs for students and families in need; and low-cost (or free) social and recreational programs for seniors. Other organizations cited concerns about the future of kiddush and seniors lunches, volunteer appreciation, building maintenance and upkeep, prepared meals for food bank recipients, and membership subsidies.

The survey notes that rising costs are affecting, to varying degrees, the ability of agencies to maintain their current level of service, recruit and retain staff, raise funds and balance budgets. Some organizations have been unable to provide staff with a cost-of-living-adjustment raise, thereby threatening their capacity to retain staff and deliver programming, and higher salary expectations mean that positions are vacant for longer, limiting the ability to grow programs. Food costs for hot lunches are up 20% and there has been a 25% increase in salaries for kitchen staff.

Rivkin stressed that, in the four months since the survey was conducted, costs have come down for some items, but the price of food continues to rise.

“Our agencies and synagogues survived COVID, and we thought we were past the difficult times,” she said. “However, we are now seeing the impact of inflation on them. When we decided to undertake the survey, we had no idea about the depth and breadth of the impact of inflation or that these pressures would affect everything from staff salaries to the cost of paper supplies. We are now working with our community agencies to explore ways to reduce costs. We recently hosted a lunch-and-learn featuring speakers from the Buying Networks Canada.”

The Buying Networks Canada is a Toronto-based organization that helps nonprofit, charitable and faith-based organizations across Canada save money on such things as food and beverages, office supplies and equipment, maintenance, and numerous other products and services.

In the summer of 2022, Jewish Family Services (JFS), one of Federation’s community partners, released information on the impact of inflation. Among the points in the JFS report were an increase in the number of clients asking for food voucher assistance, a record number of intakes for home support and the challenges Ukrainian newcomers on a limited income face with rents and food costs.

Food insecurity, according to JFS, has grown in recent months and the organization expects an increase of 150 new clients, if trends continue. Higher prices at the gas pump have resulted in fewer volunteer drivers. The greater need for services has translated into a higher workload for JFS staff.

“Community that JFS serves is on fixed income, and those individuals are the ones who suffer tremendously during this time,” said Tanja Demajo, chief executive officer of JFS. “What that means for JFS is that the number of people reaching out for help is on constant rise. Between the rise in prices, number of clients and cost of staffing, we as an agency have to ask ourselves what is our priority. This is the time when we get clarity, more than ever, who we are and what we need to do. Our goal has always been not to leave anyone behind. We hope that, even during the challenging times such as these, we can remain true to that.

“Since COVID,” she added, “staffing has been a significant challenge. It is very uncomfortable for many agencies to speak about issues of salaries, but the reality is that the professional staff has always been underpaid in the nonprofit world. With inflation, this issue has further grown and, unless taken seriously, it may impact the whole social sector in irreversible ways. Providing social support is based on relationships, and with constant changes those relationships get eroded.”

Anat Gogo, executive director of Tikva Housing Society, another Federation partner agency, is also concerned. “Inflation significantly impacts the delivery of housing programs due to increased costs and reduced availability of resources,” she said. “It can also make it more difficult for low-income households to afford adequate housing, so we are reaching out to our donors to assist us in ‘gapping’ the additional … funding needed to meet our commitment to the delivery of affordable housing and rent subsidies.”

Sam Margolis has written for the Globe and Mail, the National Post, UPI and MSNBC.

Land of milk, honey …

Toward the end of last year, Israel signed an historic agreement with Lebanon, enabling both countries to enjoy an abundance of natural gas located deep below their respective territorial waters.

Now, Israel can continue exploring its northern Karish gas field without the risk of Hezbollah missiles overhead. And Israel will receive indirect royalties from Lebanon’s Kana field – with no peace treaty (yet), royalties will be paid via a third country. Add that to potential revenues from Israel’s other natural gas finds in the Mediterranean, and there’s the opportunity of Israel replacing Russia as Europe’s main natural gas provider. Israel will become more than just the land of milk and honey.

Optimistic forecasts of a natural gas Sovereign Wealth Fund are for billions of shekels in tax revenue. Trusting that the new ruling gas triumvirate – Prime Minister Binyamin Netanyahu, Finance Minister Bezalel Smotrich and Energy Minister Israel Katz – will optimize our natural gas and its wealth fund, then Israel becomes the land of milk, honey, natural gas and an overflowing wealth fund.

Hopefully, Lebanon’s natural gas opportunity will help their economy. Then it, too, will be a country overflowing in natural gas and with its own wealth fund.

***

Israel’s 2022 inflation rate was 5.3%, its highest since 2008. Within the OECD, Israel had the third lowest rate, behind Japan’s 3.0% and Switzerland’s 3.3%. How’s that for our little shtetl! Can’t even compare these rates with the much poorer performing OECD countries such as Estonia at 23.6%, Lithuania at 24.1% and Turkey at 83.5% (yikes!).

Israel’s rate was even lower than the 6.3% of Canada, whose neighbour to the south experienced a similar level. As for Israel’s neighbours, Jordan and Saudi Arabia were at 4.4% and 3.3% respectively … pretty good. Egypt suffered a 24.4% inflation rate, Syria a rate of 105% and Lebanon 189.4%, one of the highest in the world! Israel, the land of milk, honey and competitive inflation rates.

***

Then there’s the judicial reforms bonanza. Israel’s new justice minister, Yariv Levin, is looking to overhaul the system by granting the government – through a simple majority vote – the right to overturn High Court decisions and by giving politicians more power in appointing Supreme Court judges. Detractors are concerned this gives the government way too much say over legal matters and threatens our democracy. Supporters – largely those who voted for the new government – believe these changes will strengthen the legislature’s ability to enact the will of the electorate. Theirs, anyway.

Karnit Flug and Stanley Fischer, former Bank of Israel governors, are firmly in the former camp. They’re concerned these reforms will harshly undermine the High Court’s authority and concentrate too much power with the government, hurting Israel’s sovereign credit rating, destabilizing the economy and reducing the standard of living.

Netanyahu – the free market czar who revolutionized Israel’s economy as finance minister and who extracted natural gas from our sea as prime minister – believes his judicial reforms will rejuvenate the economy by reducing excess regulation and judicialization.

Adding to the festivities. Israel’s anti-reform (and largely anti-government) movement had its third weekly 100,000-person protest in Tel Aviv last month. A sea of people storming the city square, waving flags of blue and white, singing folk songs and Hatikvah and shouting slogans of support for the high judges. Israel, the land of milk, honey and a real judicial balagan.

***

It’s here! 7-Eleven opened its first store in Israel. In downtown Tel Aviv (of course), with plans to roll out hundreds of branches throughout our little shtetl over the coming years. Hello, Slurpees! Those multi-coloured slushies were a staple of my Canadian childhood. Although now I am more a fan of the fresh Dole bananas sold at the stores in the United States and Japan, which I’d buy as a healthy snack while on overseas business trips. Looking inward, does this mean the demise of Israel’s famous mom-and-pop stores, found in neighbourhoods across the country, the Bella’s and Yankela’s, which add to Israel’s heimishe-like atmosphere? That would be a pity! Israel becoming the land of milk, honey, Slurpees … and Dole bananas.

***

On a much lighter note, what about Israel’s maple syrup revolution? It was once only available from specialty food stores, and at an exorbitant price. But what’s a poor Canadian immigrant to do? I paid the ransom and our family enjoyed Shabbat morning French toast, pancakes and waffles. Whenever visiting Canada, I stocked up with the stuff, packing carefully bubble-wrapped bottles of both real and imitation maple syrup into my suitcase.

But, thanks to free trade. Real maple syrup – the organic kind from Canada – became super cheap in Israel, even less expensive than in Canada! And it’s available everywhere, even at Bella’s and Yankela’s. Now when I return to Canada, I take back Canadian maple syrup as gifts. Dare I say it … Israel, the land of milk, honey and Canadian Maple Syrup, eh.

Bruce Brown is a Canadian and an Israeli. He made aliyah … a long time ago. He works in Israel’s high-tech sector by day and, in spurts, is a somewhat inspired writer by night. Brown is the winner of the 2019 AJPA Rockower Award for excellence in writing, and wrote the 1998 satire An Israeli is…. Brown reflects on life in Israel – political, social, economic and personal.

השגת יעדי האינפלציה

המשנה לנגיד הבנק המרכזי של קנדה חלקה שבחים לישראל על השגת יעדי האינפלציה החל משנות התשעים. (צילום: Grauesel)

המשנה לנגיד הבנק המרכזי של קנדה, ד”ר נדין בודו-טרכטנברג חלקה שבחים רבים למדינת ישראל, על שהצליחה להשיג את יעדי האינפלציה הרצויים החל משנות התשעים. דבריה של ד”ר בודו-טרכטנברג נאמרו במסגרת הרצאה לפני מספר ימים בכנס של הבנק המרכזי הקנדי, שעסק במדיניות המונטרית והכלים של המדיניות השונים להשגת המטרות שלה.

חלק מרכזי בהרצאתה של המשנה לנגיד עסק בהתפתחויות העיקריות ובאתגרים השונים, בהשגת יעדי האינפלציה בישראל בשנים האחרונות. לדבריה המשק הישראלי חווה בשנים האחרונות צמיחה כלכלית יציבה, עלייה בשכר, התחזקות המטבע המקומי (השקל) מול הדולר האמריקני ושאר המטבעות הבולטים, וכן שמירה על רמת אינפלציה נמוכה שלא רק שהיא מתחת ליעד שנקבע, אלא אף מצויה בתחום השלילי מזה כשלוש שנים.

ישראל חוותה עשור של היפר-אינפלציה בשנות השבעים וכן בתחילת שנות השמונים. ולאחר מכן עשור של מדיניות דיסאינפלציה שהתמקדה בחתירה לקצב של אינפלציה ההולך ופוחת. מאז שנת 2003 יעד האינפלציה של ישראל הוא בתחום שבין אחוז לשלושה אחוזים. למרות שרמת האינפלציה בהסתכלות אחורה על השנה האחרונה חרגה לפעמים מהטווח הזה, הסטייה נרשמה בעיקר בתקופות קצרות כתוצאה מתנודות בשערי החליפין. לפני כשלוש שנים חל שינוי משמעותי כאשר מאז נמצאת האינפלציה באופן עקבי, מתחת ליעד. עם זאת יש לציין, כי הציפיות לאינפלציה לטווחים הבינוניים הארוכים ממשיכות להיות מעוגנות היטב בתוך רצועת היעד, ובכך משקפות את אמון השוק במדיניות המונטרית של בנק ישראל.

חשיבות השמירה על יציבות המחירים בישראל קיבלה מישנה תוקף עם חקיקת חוק בנק ישראל החדש (בשנת 2010), שקבע כי תפקידו הראשון במעלה והחשוב ביותר של המוסד הוא לשמור על יציבות המחירים בשוק, ובמקביל לתמוך בצמיחה כלכלית וביציבות הפיננסית של המשק הישראלי. החוק החדש מאפשר להנהלת הבנק פרק זמן של שנה להחזיר את האינפלציה לרמת היעד, מה שנראה בזמן שהוא חוקק על ידי הכנסת – פרק זמן סביר. כך שיתאפשר לבנק המרכזי להכיל זעזועים זמניים, וכן גם אירועים חד-פעמיים שצפויים להסיט את האינפלציה מהיעד לזמן קצר.

לדברי המשנה לנגיד הבנק המרכזי של קנדה בשנים האחרונות בזמן שרבות מהמדינות ששותפות בסחר עם ישראל עמדו בפני משבר פיננסי חמור, וכלכלתן דישדשה, הכלכלה של מדינת ישראל צמחה בהתמדה, וכעת היא קרובה לשיעורה הפוטנציאלי, תוך שהיא נתמכת בעלייה מתמשכת בשיעור ההשתתפות בכוח העבודה, במיוחד של הנשים הישראליות, צמיחה בשיעור התעסוקה בכלל ענפי המשק, וכן בעלייה בשכר הריאלי והנומינלי, שאיפשרו התרחבות של הצריכה הפרטית. כמובן שהנתונים שמציגים תמונה זו לא התקבלו באופן רציף, ומלבד נתוני שוק העבודה שהיו חזקים באופן קבוע, חזינו בתנודתיות רבה של הנתונים, כולל אף תיקונים משמעותיים בנתוני החשבונות הלאומיים-הרבעוניים.

למרות העודף המובהק בחשבון השוטף, המשק הישראלי התמודד עם ביצועי החסר של מגזר היצוא. ההאטה ביצוא נבעה בין היתר מההאטה הכללית בסחר העולמי. יש לציין כי השקל הישראלי המשיך להתחזק, מעבר למה שהוערך בתחילה, דבר המשקף את ההתאמה הנורמלית לביצועים הטובים יחסית של המשק הישראלי.

ד”ר בודו-טרכטנברג מוסיפה עוד כי בישראל רמת האבטלה נמצאת ברמה הנמוכה ביותר מאז הקמת המדינה, ובמקביל השכר עולה בזמן שהאינפלציה נשארת ברמה נמוכה. בישראל גברה המודעות למחירים הגבוהים וגברה התחרות בתחום הקמעונאי, בעיקר עם התגברות השימוש באינטרנט. כיוון שרמת המחירים במדינה גבוהה היא מותירה מקום רב יותר להפחתת מחירים, שמקורה בתחרות המוגברת.

Brisket at any price?

Why do we love brisket so much? (photo from Jewish Post & News)

When Ricki Silver was leaving for Toronto to visit her family, she faced a dilemma: Do you continue the brisket tradition with the skyrocketing price? The plaintive cry of her granddaughter Charlie – “Bubba, are you bringing the brisket and the gravy?” she wailed over the phone – answered the dilemma. Silver had no choice but to continue her more than 40-year tradition and shlep the brisket to Toronto, cooked and ready to enjoy.

Why do we love this rather tough cut of meat so much? Why has the price hit the roof? Why do so many Jewish people feel their holiday table is empty without a brisket? Why do people treasure and brag about their own brisket recipes? And what are we going to do with this time-honored Jewish tradition now that brisket is just so popular and expensive?

“Brisket is one of the tastiest cuts, hands down, just unbelievable,” according to butcher Al Jones.

Because of this, the demand has gone up, particularly as more people have smokers, slow cookers and backyard barbecues. Jones has found that brisket customers are younger and watch cooking shows, so they are more inclined to try new recipes. At the same time, the price of beef has been steadily rising and shows no signs of changing. This is a function of the Canadian dollar, global economy, climate change and farming practices. “Farmers are using their fields to grow crops that can be used for making gas,” said Jones. This results in higher costs to grow the corn needed for cattle grazing.

Jews have been eating brisket for what seems like forever and, according to Matthew Goodman in his charming cookbook Jewish Food: The World at Table, this brisket business began at the end of Genesis 32 when Jacob had an attack from an angel and injured his thigh vein. Jews stopped eating the cow’s hindquarter. Plus, kosher meat requires quick preparation so the meat is not fully aged and tenderized. The result is that Jews had to find other ways to make meat tender, says Goodman. Brisket, with its need for slow cooking, is simply the perfect food.

Meat, including brisket, is also a cornerstone of Jewish deli food. David “Ziggy” Gruber, who is featured in the documentary Deli Man, said he had a calling to continue this style of cooking. “I feel my ancestors right next to me. It makes me happy,” he says in the film. Perhaps this is what drives many of us to pine for brisket and have it on our holiday table.

“Everyone has a brisket story,” writes Stephanie Pierson in her book The Brisket Book: A Love Story With Recipes, and often “my way is the only way.”

In my Thursday lunch group, one person swears by onion soup, others marinate in different concoctions involving either cola, beer, coffee, soy sauce or orange juice. Even the most uncompetitive person is likely to have a strong opinion on how to make the best brisket. Jones recommends avoiding the use of salt, as this tends to make the meat tougher and he believes that marinating is crucial.

Competition is intense on the price front and everyone seems to be trying to find a good buy, but price should not be the only consideration – quality counts. Jones said people should buy their meat from a reputable butcher to make sure that it has been hung and aged properly. He recommended it have a bit of fat on it. “That is why knives and forks were invented a few hundred years ago,” he said. You need the fat to keep the meat moist and tender, he explained. Just cut it off after the meat has cooked.

So, what is with this brisket love affair? No question, once you go through the days of marinating, cooking, cooling, slicing and reheating, brisket is a totally forgiving cut of meat. If your guests are late, forget to come or are impossible to please, brisket is your most reliable main course. This slab of meat never gets dry, everyone loves it and leftovers are even better than the meal. For Silver, there are four food groups: “meat, vegetables, dairy and brisket.”

Brisket keeps us connected to our past and elevates our celebrations to a special event. Our traditions keep the holidays alive and bring family and friends together. Many of us have our own superior brisket recipe passed down from one generation to another and strong memories of food prepared with love. This brisket food chain tells a story that deserves to be preserved.

Fern Swedlove is a Winnipeg freelance writer. A longer version of this article was published in the Jewish Post & News.