Economist tallies swelling cost of Israel to US
Since 1973, Israel has cost the United States about $1.6 trillion. If divided by today's population, that is more than $5,700 per person.
This is an estimate by Thomas Stauffer, a consulting economist in Washington. For decades, his analyses of the Middle East scene have made him a frequent thorn in the side of the Israel lobby.
For the first time in many years, Mr. Stauffer has tallied the total cost to the US of its backing of Israel in its drawn-out, violent dispute with the Palestinians. So far, he figures, the bill adds up to more than twice the cost of the Vietnam War.
And now Israel wants more. In a meeting at the White House late last month, Israeli officials made a pitch for $4 billion in additional military aid to defray the rising costs of dealing with the intifada and suicide bombings. They also asked for more than $8 billion in loan guarantees to help the country's recession-bound economy.
Considering Israel's deep economic troubles, Stauffer doubts the Israel bonds covered by the loan guarantees will ever be repaid. The bonds are likely to be structured so they don't pay interest until they reach maturity. If Stauffer is right, the US would end up paying both principal and interest, perhaps 10 years out.
Israel's request could be part of a supplemental spending bill that's likely to be passed early next year, perhaps wrapped in with the cost of a war with Iraq.
Israel is the largest recipient of US foreign aid. It is already due to get $2.04 billion in military assistance and $720 million in economic aid in fiscal 2003. It has been getting $3 billion a year for years.
The Christian Science Monitor
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Those fellows at the Economist know how to calculate, I came up with the same figures a while back - good job! The question it leaves is this - how "robust" is the Israeli economy without these handouts and preferential treatment?
ReplyDeleteThat sum of 1.6 Trillion was up to 2002. I read a comment by citizen on mondo saying that it reched over 7 trillion in 2009. And growing of course.
ReplyDeleteYou are correct TGIA, but up until that year they are correct. I see the figure as a bit below 5 Trillion to the present date, but what is a few trillion dollars when you get so much deaceit, death, and destruction?
ReplyDelete<span>You are correct TGIA, but up until that year they are correct. I see the figure as a bit below 5 Trillion to the present date, but what is a few trillion dollars when you get so much deceit, death, and destruction?</span>
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