I think the influence and position of the Charedim is only a part of the problem. What makes matters worse is the fact that Israeli wages cannot keep up with the costs of living in Israel, and if the rate with which the wages are growing remains stable, in a couple of years the economy will probably start to suffer badly. Furthermore, and this is where the Orthodox Jewish community ties into it all, is not only the fact that they have the tendency to breed like rabbits (the average Charedi family consists of roughly ten children) is that Charedi schools are free, which has led to non-Orthodox Jews into putting their children on Charedi schools, which will increase their numbers even more.
Most of the people I met in Israel seemed to really dislike the Charedim. One shop-owner described them as maffia-esque; apparently if you open your shop on the Sabbath, they'll come and throw in the windows with bricks the following day.
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