The government’s use of the economy as a justification for this fight is simply deception at its best. This is about “sharing the burden” of army service and nothing more. That may or may not be a reasonable argument, but that’s the only argument to have.
It’s the government’s own policy which prevents people from working legally until they have finished army service that locks the chareidi community into lifelong learning and rampant poverty. Equate intensive Torah study for 3-4 years post high school with army service, and allow those completing such programs the legal right to work, and you will take huge strides towards minimizing dramatically the economic problems.
But, as I said, at best this is about sharing the burden of army service.
That said, the government’s historic and continued unwillingness to address the reasonable issues the chareidi community has with the negative spiritual/religious environment today’s Israeli army creates makes me wonder if this is more about a different battle altogether.