COVID-19 and the American Jewish Economic Crisis

American Jewry is facing a financial and structural crisis. The economic impact of the coronavirus pandemic will be devastating to the American Jewish communal system and is of immediate concern to a significant number of Jewish families and seniors. The longer this crisis continues, the broader and more destructive the impact will be on our communal and religious enterprises.

The immediate concern must be for vulnerable families and seniors, as income streams freeze and communal resources diminish. Longer-term realities suggest an economic tsunami, wide and deep, affecting broad segments of the Jewish institutional landscape and placing substantial pressure on the core resources of our fundraising and foundation networks.

Although there is no way to know the full social and fiscal impacts of this crisis, initial reports from family service providers, Jewish free-loan administrators, Jewish educators and rabbinic leaders suggest a broad and growing caseload of families and individuals in crisis. The range of needs and affected people will be extensive, including individuals living in isolation, families reporting on domestic violence, and households without the financial resources to meet food and shelter requirements.

On the operational side, questions are rising about the economic viability of synagogues, schools and camps. The Jewish social-service safety net is being stretched by the dramatic rise in requests for clinical and health services; limited access to loans and grants; fewer resources to sustain counseling and meal programs; and the lack of availability of scholarships and financial-assistance packages. Pressures on the communal system will continue to increase as conditions deteriorate.

On the professional side, we likely will experience significant job displacement. Institutional reductions in services and programs will be extensive, and the permanent closing of buildings and other communal resources will be devastating. In the aftermath of this pandemic, we likely will observe a number of institutional mergers and the realignment of organizational missions.

“Following this extraordinary moment in time, we will see profound changes in the Jewish world.”

In particular, the future of Jewish camping, the viability of many synagogues and schools, and the wellbeing of some of our social service agencies will be threatened. The scope of financial resources that likely will be required to “save” the number of “in trouble” organizations, agencies, camps, schools and synagogues is beyond the reach of Jewish funders. As Jewish foundations and funders nationally and locally seek to mobilize their resources, the economic spread appears to be expanding experientially.

Following this extraordinary moment in time, we will see profound changes in the Jewish world. A wide swath of our communal and religious systems likely will come undone by this experience.

One should look at various historical models to gain helpful insights. In her research on New York Jews and the Great Depression, author Beth Wenger provided an important perspective on the economic, social and political changes that resulted.

As with the 2008 economic recession, we will likely see a fundamental downsizing of the American Jewish community. At that time, I wrote:

“The full impact of the current economic crisis may not be felt for years. In the midst of it, core institutions are being fundamentally reshaped and individual lifestyles reconstructed. These economic challenges threaten the existing infrastructure of the American Jewish community, leading to a new order of institutions and leaders. … For many older Jews, many of their core institutional patterns of personal engagement have been altered. For younger Jews, the dislocations may foster opportunities for further experimentation and disengagement from traditional patterns. The long-term outcome of this transformation is likely to be a far weaker, less cohesive American Jewish community.”

What possibly is more debilitating than previous economic reversals is the current reality that the institutions of our community are financially and programmatically limited, and in some cases, unable to operate during this pandemic shutdown. At the moment, we are, in essence, frozen in place.

In responding to these emergency and long-term financial needs, can we expect a nationally driven and locally managed effort to mobilize our communal resources?

We will see profound changes in the Jewish world following this extraordinary moment in time. When our communities return to a new normal, we will have inherited a weakened and financially compromised communal infrastructure. Adding to this level of uncertainty, during the next several years, it is conceivable we will experience other “waves” of COVID-19 and/or the possibilities of other pandemic conditions.

Projections:

The “New” American Jewish Community: It is possible that in the aftermath of this phenomenon, we might see a fundamental reorganization of the core functions of our Jewish communal system.

Generations: Consider that millennials and Gen Z already have encountered in their lives the 2008 financial crisis and now, this pandemic; their lives forever will be shaped by these two experiences. In comparison, the Great Depression affected our grandparents. In the aftermath, transformative events frame how a generation thinks and behaves.

Virtual Tools as the New Reality: We now know virtual technology will become a central and fixed organizing tool for learning, shopping, engaging and praying. We are witnessing in some measure the best of society and of this sector. With great speed, we have already been able to document an explosion in online services, programs, and resources and the personal networks of friendship and support that have emerged.”

Religious/Communal Revival: Are we likely to see a bump-up in religious participation and communal engagement? After previous crises in U.S. history (for example, the Civil War and World War II), America experienced an uptake in religious and civic engagement.

This moment marks a new American Jewish reality. In these challenging times, we will see a fundamental economic restructuring of the communal enterprise, just as we will experience the reshaping of our larger social networks, our systems of practice and our focus on a different political environment.

Steven Windmueller is the Rabbi Alfred Gottschalk Emeritus Professor of Jewish Communal Service at the Jack H. Skirball Campus of HUC-JIR, Los Angeles. His writings can be found here.