Has Israel “bankrupted” the United States?
Aug 25th, 2008 | By Andrew L. Jaffee | Category: Economics, Featured, Foreign AffairsBy Andrew L. Jaffee, netwmd.com
U.S. financial assistance to Israel can be a contentious topic, even when discussing foreign policy issues using accurate information. Very often, opponents of Israel use wildly exaggerated, even fabricated “facts and figures” and extremely hyperbolic language to disparage the Jewish State — even claiming the U.S. has been pushed to the verge of bankruptcy by supporting Israel. The obfuscations about U.S. aid to Israel have been bothering me for a very long time, so I decided to research the numbers myself and compare my findings to the figures advanced by hysterical critics of Israel.
For example, an anti-Semitic publication, which so innocently calls itself the “Washington Report on Middle East Affairs” (WRMEA), claims that American taxpayers have paid “$3 Trillion” for supporting Israel. WRMEA tries to blame Israel for 1) rising oil prices, 2) the cost of both Iraq wars, 3) and American job losses, and has published articles with Protocols-of-the-Elders-of Zion-style headlines like “Israel has had in place a shadow government in Washington” and “Will the State Department Remain Israeli-Occupied Territory?”
Here I’ll show how exaggerations by groups like WRMEA are not even close to reflecting reality.
Bare with me as I run the numbers and document my findings.
The preliminaries
- $1,000,000,000 = $1 billion
- $1,000,000,000,000 = $1 trillion
- 2007 aid to Israel: $2.5 billion (ref, ref)
- 2007 U.S. GDP: 13,543.330 billion (ref)
- 2007 U.S. Federal Budget (receipts): $2,415,852,000,000 (trillion; ref)
Running the numbers
- $2,500,000,000 / $13,543,330,000,000 = 0.00018 * 100 = 0.018%
- In other words, U.S. aid to Israel is 0.018% of one year’s U.S. GDP
- $2,500,000,000 / $2,415,852,000,000 = 0.00103 * 100 = 0.103%
- In other words, U.S. aid to Israel is 0.103% of one year’s U.S. federal budget
U.S. Bankruptcy?
How exactly is aid to Israel “bankrupting” the U.S.? U.S. businesses (and workers) exported $128 billion in goods to Israel from 1989 to 2007. That’s more than double the aid provided to Israel during the same period. Granted, Israel exported products to the U.S., and I could provide balance of trade numbers, too. Should we deny Americans the products they wish to purchase from a loyal ally? No.
I’m still not sure how the U.S. is being “bankrupted,” especially given economic performance:
- U.S. GDP was $9,953 billion in October 2000 and $14,201 billion in January 2008.
- Monthly unemployment rate during the same period averaged about 5.1% — a tad lower than during Clinton’s years. Pretty good for an industrialized/Western nation.
- CPI (inflation) has averaged 3% like it has for almost a century.
Aid to Egypt
Strange, I haven’t heard many claims that U.S. aid to Egypt is bankrupting America.
- Christian Science Monitor (2004): “All told, Egypt has received over $50 billion in US largesse since 1975.”
Examples of U.S. aid to Egypt:
- 2002: $2.0 billion
- 2003: $2.2 billion
- 2005: $1.8 billion
- 2006: $1.8 billion
Aid to the Palestinians
I haven’t heard many complaints about U.S. aid to the Palestinians. Indeed, those complaining loudest about aid to the Palestinians say that America is not funneling enough money to the West Bank and Gaza.
- From Reuters: direct U.S. aid to Palestinians in 2008 will be $550 million; plus $148 million through the UN; plus $228 million in loan guarantees.
- $550 m + $148 m + $228 m = $918 million in 2008
From the Congressional Research Service (CRS) - U.S. Assistance to the Palestinians:
- 1999: $85.034 million*
- 2000: $75,000 million*
- 2002: $72.000 million
- 2003: $134.484 million
- 2004: $74.558 million
- 2005: $274.400 million
- 2006: $150.000 million
- 2007: $50.000 million (CRS)
Let’s total it up: $2333.476 million =~ $2.3 billion in aid to the Palestinians. Not bad for two “governments,” the PA under the PLO/Fatah and PA under Hamas, sworn to the destruction of our ally Israel.
Total Aid to Israel
Israel has received $100 billion in U.S. aid since 1949 according to the Congressional Research Service (CRS); $80 billion according to the Harvard Israel Review. The CRS numbers “only” differ from WRMEA by $900 billion. The Harvard University figures contradict WRMEA by “only” $920 billion.
Sadly, such wild exaggerations are hurled in Israel’s direction constantly. Those people who support the Jewish State find themselves constantly defending Israel not only from hyperbole, but from bold-faced lies.
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Mr. Jaffee,
Thanks for this information! I am setting up a Meta Articles section soon, and this will certainly be one of them. I am constantly astounded by the hue and cry that one hears regarding our aid to Israel, one of our staunchest allies. What these people choose to ignore is that aid can be a tool of peace and humanity, as it is in Africa and Asia. Hopefully aid will not just increase the security of Israel, but someday help broker a lasting peace there…
E.D. - Thanks for your kind words. This is just the start of a series of reality checks about Israel. Eventually, I want to aggregate all the articles into a “Israel Facts” database/resource for other authors to use in combating anti-Israel, oh, sorry, anti-Zionist propaganda.
I think the term you’re looking for is anti-Semitic, actually….
Here this so called writer totally did not mention anything abt the neocon , jewish lobbies influence n design of iraq war n its implication 2 the us economy.
Ohhh give me a moment !!! u will say isral has nothing 2 do with iraq war!!!
Is that really so!!!
Can u remember the The peoples those who design the iraq war Paul wolfowitch, dauglus faith, warmser n other neocon n pentagon cabals.
The iraq war n all the fact wat is happening in the middle east is totally designed by the israel n its lobby in the us.
N all these stuff totally damaged us economy n its reputation through out the world.
Now lets come from the beginning n now posting all the secret projects these jewish cabals n israel has undertaken so far 2 promote their agenda.
1ST PROJECT IS “”"”" A Clean Break: A New Strategy for Securing the Realm “”"”"”"”"
http://en.wikipedia.org/wiki/A_Clean_Break:_A_New_Strategy_for_Securing_the_Realm#Analysis
Here this so called lobby grp has made some secret plan 2 destroy all the peace plan n blame it 2 the palestine n especially 2 damage the oslo peace treaty. Use force 2 pursue all the arab states their demand n land plaanned by them, dnt give syria the golan heights, Remove saddam hussain from its power, Attack on hezbullah 2 capture southern lebanon again n lastly if possible attack on syria n iran obviously by using usa.
This is how ur israel bankrupted usa along with israel lobby grp such as AIPAC, with all the defence cabals n along with all the fanatic right winger evangelical christians.
All most all these israeli lobby grp along with some defense cabal made another plan for usa by mixing with the Israeli plan.
“”"”" A Clean Break: A New Strategy for Securing the Realm “”"”"”"”"
N the name of the project is
“”"” PROJECT OF NEW AMERICAN CENTURY”
http://en.wikipedia.org/wiki/Project_for_the_New_American_Century
Here the plan was that 2 attack iraq and remove saddam hussain at any cost n 2 attack afghanistan , taking control of the caspian sea region natural resources n the iraqi oil field which has belived 2 be 400 billion barrels of oil n its quality is the best in the world and more than 1.5 time bigger than saudi oils.
The did not ends here.
HERE THE JEWISH CABALS IN THE US made some plan 2 deliberately 2 provoke hamas 2 seize the control of gaza.
HERE THE FOLLOWING ARTICLE WAS PUBLISHED ABOUT THIS IN DETAILS IN US MAGAZINE “VANITY FAIR” BUT INTERESTINGLY WAS NOT SHOWN ANY WHERE IN THE US MEDIA.
here in the below the article about how us provoked hamas 2 seize control of the gaza is as below.
http://www.vanityfair.com/politics/features/2008/04/gaza200804?currentPage=6
If u ppl have guds than read the article.
Same thing they did during the 2006 ISRAEL N HEZBULLAH WAR.
here the israeli controlled Zionist media totally manupulate the fact that it was israel who has started the war n THE 2 ISRAELI SOLDIER WAS NOT CAPTURED FROM ISRAEL BUT FROM 10 MILE DEEP INSIDE LEBANON WHEN ISRAEL DELIBARETLY ENTERED LEBANON 2 PROVOKE LEBANON.
N israel has designed this war from 1 year b4 n in the last step it was planned 1 week b4 by meeting between EHUD BARAK N DICK CHENNY.
A MUST MUST READ 2 KNW 2 WAT EXTANT THIS NEOCONS N ISRAELIS R WICKED 2 PLAN N EXECUTE THE ATTACK ON LEBANON.
http://www.stripersonline.com/surftalk/showthread.php?t=494856&highlight=clean+break
Here they had a long agenda. 1stly 2 destroy hezbullah, capture southern lebanon , when they will reach syrian border then 2 expand this war 2 syria.
N 2 attack iran the prepared a false report regarding iran in 2005 is building nuclear weapon.
Their n espacially of bush admins main plan was 2 then expand the war in iran 2 get the public cupport during 2006 election.
These guys , israelis , its zionist element in usa, n all the fanatics born again evangelical christians are the main cause of wat has happen in the middle east n for all these ba economical condition.
There is no way 2 deny it that israel is the root cause of all american problem economical n political n obviously it is the AIPAC which execute all its plan in usa on behalf of israel as they control capital hill by giving money 2 the senators congressman n provide fanatic evangelical christians support during election.
Lastly like 2 end my article with a quote by ARIEL SHARON and by a usa senator.
“The Israelis control the policy in the congress and the senate.”
– Senator Fullbright, Chair of Senate Foreign Relations Committee: 10/07/1973 on CBS’ “Face the Nation”.
“I am aware how almost impossible it is in this country to carry out a foreign policy [in the Middle East] not approved by the Jews….. terrific control the Jews have over the news media and the barrage the Jews have built up on congressmen …. I am very much concerned over the fact that the Jewish influence here is completely dominating the scene and making it almost impossible to get congress to do anything they don’t approve of. The Israeli embassy is practically dictating to the congress through influential Jewish people in the country”
According to Israel radio (in
Hebrew) Kol Yisrael, [Shimon] Peres warned [Ariel] Sharon
Wednesday that refusing to heed incessant American requests for a cease-fire
with the Palestinians would endanger Israeli interests and “turn the US
against us.”
At this point, a furious Sharon reportedly turned toward Peres, saying
“every time we do something you tell me Americans will do this and will do
that. I want to tell you something very clear, don’t worry about American
pressure on Israel, we, the Jewish people control
America, and the Americans know it.”
Andrew–
I found the above comment lounging in my Spam filter. Now, while it’s little better than spam, I had to release it if only to reveal the depth of ignorance and bigotry and paranoia in the world.
Oy. I’m glad you did release it, E.D. It truly is a monument to bigotry and ignorance. I’m soooooo glad the author edjmikated me to the “fact” that Jews do indeed control the known universe (”Now lets come from the beginning n now posting all the secret projects these jewish cabals n israel has undertaken so far 2 promote their agenda.”) Such excellent spelling and grammar (NOT!).