April 23, 2010 5:24 pm at 5:24 pm #591591UpperMidwestMember
I sell for a midsize manufacturing operation with mostly non-jewish, overwhelmingly non-frum clientelle located nationwide. However, the TOP 5 unpaid grossly late accounts are my frum business clients/institutions (> $40,000.00 in some cases), which has developed and worsened this past year. That is out of literally HUNDREDS of accounts. I am the only frum employee here, very concerned about this chillul Hashem, and wonder if the frum community’s financial health is near breakdown. Too many people being supported by previous generations money and unable to pay their own bills. It feels like things are coming to a head… Anyone else?April 25, 2010 1:57 am at 1:57 am #683608
I personally heard a very prominent American Jewish leader say that everything will collapse completely within ten years if we continue on the same path. We need over two billion dollars annually just to pay for our schools and with only a few hundred thousand frum families in America I have no idea where the money will come from. Yes, HaShem is in charge of everything in the world, but it is asur to rely on a miracle.April 25, 2010 1:59 am at 1:59 am #683609
Regarding the unpaid accounts: When did it become mutar not to pay ones’ bills? Are these really frum institutions? If they didn’t have the money, what are they doing making the order from your company?April 25, 2010 3:55 am at 3:55 am #683610Dr. PepperParticipant
Are you in any position to call the offending institutions/ clients? They might not realize what kind of issues they are causing at the other end.April 26, 2010 1:31 pm at 1:31 pm #683611the.nurseMember
unfortunately, i have heard people say that they will not take on frum customers because they are notorious for either not paying their bills, or making it so difficult to get the payment that it’s not worth the time and effort.April 26, 2010 1:51 pm at 1:51 pm #683612UpperMidwestMember
Sadly, yes, these are truly frum businesses/institutions. To answer Dr. Pepper, I am contractually obligated to call them, so yes, I have many times. They are all aware of the issues it is causing. Frankly, they are not being paid by their frum clients who apparently they tell me are not being paid by their frum clients and that is what is causing this ripple effect (in 3 of the 5 cases)…. This is elementary economics. If Zaidy has a dry-goods store, worked hard, and made and saved a substantial amount of money, then married off his 4 kids. 2 of those 4 kids went into chinuch and needed ongoing financial assistance to pay tuition, mortgage and bills and each of those 2 had 6 kids each and they all married (for no less than $30k a wedding) and went into Kollel or married into kollel and all need help, Zaidies money is spread pretty thin and all of them are paying substantially reduced or no tuition, so all of those grand and great grandkids are being educated with scholarships that dont exist, then, lo and behold the school cant pay their rebbeim and suppliers properly or at all, thus the rebbeim need support from their parents/grandparents and on and on and on…. multiplied by thousands and thousands of the same story….. Is it sustainable? What do we do? I know that this is reaching a tipping point. My friends in other businesses all over the country are saying the same thing. The frum businesses, by and large cant or struggle to pay their bills on time or at all… Much much worse than just 5 years ago…April 26, 2010 3:20 pm at 3:20 pm #683613JoseMember
Would you please provide the name of the prominent American Jewish leader so we can understand waht his comment meant.April 26, 2010 4:46 pm at 4:46 pm #683614SJSinNYCMember
The current system is unsustainable.
I think our current Yeshiva system is breaking everything else.April 26, 2010 8:17 pm at 8:17 pm #683615JotharMember
It’s no secret. Yeshivas with no outside cost-control oversight plus parents supporting multiple children in learning plus banning college for other kids= a system where unless you’re a gvir, you’re in trouble.April 27, 2010 8:23 pm at 8:23 pm #683616
Jose, I have contacted YWN regarding the identity of the leader I mentioned and I am awaiting a response. I will post again once I hear from the editors.
You can post which leader you refer to.April 28, 2010 2:07 am at 2:07 am #683617
The person who made the comment was Rabbi Tzvi Hersh Weinreb, until recently the Executive Vice President of the Orthodox Union. He made the comments with about 20 people present in the room last fall with me in attendance. It was a small comment in a longer discussion about problems facing the Orthodox world today. He clearly saw the financial issues as a huge problem that needs immediate attention.
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