"On the Baron's Account" - Is the Independence of the Torah World an Opportunity for Prosperity?

One of the most interesting chapters in the history of the Jewish settlement in the Land of Israel is the period when Baron Rothschild withdrew his patronage from the first settlements.

During this period, the Baron carried on his shoulders the economic burden of most of the First Aliyah settlements, primarily Zichron Yaakov and Rishon LeZion. Officials and agricultural advisors sent from France dictated to the farmers what to grow, supervised the management of the settlements and marketing of produce, and the Baron himself provided for their livelihood – regardless of their economic success.

The harvest, especially wine, was sold in Europe, but the connection between work and wages was tenuous. The farmers received fixed salaries as long as they obeyed the officials' instructions, and the officials in turn did not always ensure efficiency or profitability. This created a situation where the settlements were completely dependent on the Baron's support, and the life of the settlement was conducted, as they used to say then (and until today), "on the Baron's account." Or in the guttural jargon of Palestine: "Ala hasab il-Baron."

At the end of the 19th century, Baron Rothschild began to lose patience. He remained a loyal supporter of the settlement, but he grew tired of the daily involvement in the settlements and announced that the support regime would end. The farmers, who over the years had become accustomed to complaining about the Baron's officials and even rebelled against them, were terrified to hysteria. In their eyes, this was a decree of destruction—for the settlements and for the entire Zionist enterprise. Desperate delegations went to Paris, but the Baron stood firm: the game was over.

After a few years, it turned out that his decision actually benefited the settlement. "The General Assembly of the Joint Vintners Association," reported the HaOlam newspaper in 1908, "breathed life into our settlements... The successful results of the first year were a tremendous protest against the Baron's officials and ICA and a complete victory of freedom over slavery and guardianship."

The farmers, who finally took responsibility for their livelihood, began to invest, develop new crops according to market needs, and became more self-confident. The settlements, which initially seemed on the verge of collapse, actually flourished and prospered.

Bread of Charity

And from then until today - every time the Haredi parties are in the coalition — and even much earlier, as soon as the election results are known, they make a clear demand: increasing budgets for yeshivas and kollelim. The declaration of dependency, of tying the future to the state budget index, is the campaign slogan.

Let's state the obvious: Torah study is a core value for us, the rock of our existence, and it is right that we promote in government the values important to us. Smotrich promotes settlement, Merav Michaeli promotes extreme feminism, Gilad Kariv promotes women at the Western Wall, Yair Lapid promotes himself, Avigdor Lieberman enhances the absorption basket, and Gafni promotes Torah scholars. Why are they allowed and we are forbidden?

But there is something else that needs to be said: the contribution to the public treasury is not equal. The wealthier a citizen is, the higher taxes they pay and the more significant amounts they contribute to the state. Conversely, when distributing the budget, the voice of someone who pays taxes is equal to the voice of someone who does not contribute at all, and sometimes is even a burden on the public coffers. The government, which is the executive arm of parliament, distributes budgets according to the elected coalition—and every vote has equal weight at the ballot box, regardless of its economic contribution.

The debate over funding the Torah world has existed since the establishment of the state. But in recent years it has intensified; today 1 in every five students in the education system is Haredi, and there was also a dramatic increase of 8.5% in the number of yeshiva students, just from January 2024 compared to January 2023.

Our representatives in the Knesset repeatedly insist that canceling the budget for Torah scholars is wielding a sword over the Torah world, as if it were the only oxygen balloon and any fluctuation in the budget makes breathing difficult.

For the sake of fairness, in the opinion - executive summary of budget allocation under coalition agreements to the Haredi education system (2025) published this week by the Israel Democracy Institute - it appears that the support budget for Torah institutions stands at 1.269 billion NIS. Out of 619 billion NIS from the total budget (not including Haredi Jewish culture, Torah classes 70 million NIS, "Educate the Youth" program preventing dropouts among small yeshiva students 28 million NIS, dropouts support tests 5.74 million NIS, etc.) Is the Torah world at stake over this budget amount? The institution managers have the answers.

Let the Numbers Speak

In an excellent article by Israel Weingold on the 'Tzarich Iyun' website, he writes: Public resentment over state payments to yeshiva students and married scholars dates back to the establishment of the state. However, over the years the issue has gained momentum, both due to the blessed growth of the Haredi public, and the increase in the percentage of scholars whose Torah is their occupation.

Remnants from Another Era

If we examine why Torah study needs state funding, we'll discover that perhaps it's not about a project of "bringing merit to the many," or 'a person wants his own measure,' or saving from the sea or from the lion, etc., but for completely different reasons. And it is very similar to that support from Baron Rothschild back then in the developing settlement.

One explanation for the natural demand for 'allowances' customary in Haredi society is the character of Jewish society that existed in the Land of Israel many years before the establishment of the state – even before it received the title "Haredi." This society, called the "Old Yishuv," relied explicitly on the institution of "distribution" – donations from abroad that allowed existence without engaging in livelihood, based on a concept of abstaining from the affairs of this world.

Another explanation lies in the unique circumstances of the state's establishment. The new Yishuv grew out of an unformed reality, without an organized system of rules and without a stable economic infrastructure. The task of building was imposed on the first immigrants, and within this situation, Haredi society focused on the urgent project of rehabilitating yeshivas, communities, and religious institutions – while material and organizational aspects remained in the hands of the secular public, which established the state.

This created a situation where Israeli earthiness and economy developed without significant Haredi involvement, while the Haredi public continued to adhere to some form of abstention. At the same time, the socialist character of the state in its early days ensured mechanisms that allowed Haredi society to exist, albeit with difficulty, while relying on government support.

As during the establishment of the Yishuv, the first settlements had to deal with a significant change: the cessation of economic support from Baron Rothschild. At first it seemed like a disaster, but precisely the transition to economic independence brought growth and prosperity. The farmers, who were forced to take their fate into their own hands, learned to manage economically and base their future on productive work rather than allowances. So too today, it seems that the time has come to spread wings and set out on a new path. "And to establish the Torah world on its own" of course not in one day and not all at once, but to take one step out to become less and less dependent on state funds.

The American model, where Torah scholars live at their own expense and at the expense of like-minded people, must return and become part of the Haredi reality in the Holy Land. Many point out that in the U.S., the Torah and its scholars receive genuine respect – Torah scholars are not required to fight for their right to study, and do not engage in struggles demanding that state funds maintain the Torah for them, so that the Torah earns respect. And the future of Torah scholars there is more secure. In contrast, in Israel, when funding for study comes from and depends on the goodwill of people who do not desire it, the Torah becomes cheap and despised in their eyes. The fear of government decrees haunts them evening and morning, and their future dedication to Torah is shrouded in fog.

Just think of a situation where every young man or married scholar would receive the name of a householder or "R. Zevulun" who supports him and maintains him? Wouldn't the importance of his study rise tremendously, when he would know that his Torah study is not related to some abstract figure but to a real person, with a name and face, who funds him from his pocket?

Excuse Me, What Year Is It?

In this period, full of despair, more and more voices are heard saying: look at those zealots for the state – how right they were, how farsighted, that we should not have taken part in the state. Against them, others defend and say: a broken clock shows the correct time twice a day, and if so – a clock that was right once in seventy-five years certainly has no substance in its words.

But this is an anachronistic debate. The reality is that the Torah world in the Holy Land is becoming more and more dependent on state funds. Scholars live from its allowances, Torah institutions eat from its hand, the decree of dormitories alone presents a consideration for the Torah student whether he should go to work?! Does anyone seriously consider the possibility that all this might stop one day – whether for conscientious reasons or for technical reasons. Is there no place to fear for the fate of the Torah world?

Perhaps now is the time to recalculate the route – not, God forbid, to completely give up our share of the budget pie, but certainly to start examining directions for economic independence. To make the Torah world not 100% dependent on the state, like an organ on which the soul depends, and to achieve true freedom – and next year to be truly free people.