The Case for Defunding Israel

According the Congressional Research Group, a nonpartisan research arm of the US Congress, Israel has never been a self-sufficient "state".

"Israel is not economically self-sufficient, and relies on foreign assistance and borrowing to maintain its economy. Since 1985, the United States has provided $3 billion in grants annually to Israel. Since 1976, Israel has been the largest annual recipient of U.S. foreign assistance, and is the largest cumulative recipient since World War II. In addition to U.S. assistance, it is estimated that Israel receives about $1 billion annually through philanthropy, an equal amount through short- and long- term commercial loans, and around $1 billion in Israel Bonds proceeds."

This section makes no mention of loan guarantees, but Israel also receives an additional $9 billion wherein many cases repayment is waived. With grants and loan guarantees that brings US annual contributions to Israel in at about $10 billion. According to the CIA Factbook that is roughly 1/10 of Israel's annual GDP. Such an infusion of cash into the US economy would be nearly equal to $1 trillion!

Supporting European Jews in their effort to create a Utopian theocracy in a highly contested region was not good foreign policy in 1948 for many reasons, but it certainly has come home to roost today. Manifesting itself in declining commercial and political relationships around the world and in fewer social and health care services here at home.

Our reputation around the world is clearly being affected negatively by our partisan support for Israel. Our proxy war in Iraq and our overt threats to Iran in the interest of this relationship have cost us many friends abroad. These days it's not only Arab countries that are showing disdain for US government policies regarding the Palestine Issue, but many nations including China, Russia and The European Union are making their feelings known through trade.

From 2005 to 2006 US exports to China only rose by $14 billion (approx. $41 billion to $55 billion). During that same time exports from the EU to China increased by $22 billion (approx. $71 billion to $93 billion ) despite the relative strength of the Euro.

Having lived in China for two years and traveling there on business since, I can tell you that Chinese firms are negotiating contracts with European firms at a much greater rate than before the Iraq war. This war was waged in the name of "national security" and yet at no time has Iraq or Iran posed a physical threat to the United States. The only countries they are capable of threatening are their immediate neighbors. It is clear, however, that protecting Israel was the goal if we look at the Kyl-Lieberman Amendment to designate the Iranian Revolutionary Guard a "terrorist organization". That Amendment was later adopted as policy by the Bush administration.

Not only are we losing American jobs through our meddling in the Middle East, but the $10 billion a year that goes into Israeli pockets is coming from government programs here in the United States. With that money we could send 1,713,502 college age students to a public university for an entire year. With that same money we could provide 909,090 American families with health insurance for a year.

The money we give Israel is but a drop in the bucket compared to the cost of the war in Iraq waged on their behalf. It is time to take a very hard look at the damage our monetary and moral support for Israel, is having on the US economy.

Sources:
http://www.fas.org/sgp/crs/mideast/IB85066.pdf
https://www.odci.gov/library/publications/the-world-factbook/geos/is.html
http://trade.ec.europa.eu/doclib/docs/2007/november/tradoc_136870.pdf
http://usinfo.state.gov/eap/Archive/2005/Mar/03-517799.html
http://money.cnn.com/2006/10/24/pf/college/college_costs/index.htm
http://www.usatoday.com/money/industries/health/2005-09-14-family-health-policy_x.htm
http://tpmelectioncentral.talkingpointsmemo.com/2007/09/kyllieberman_iran_amendment_passes_by_huge_margin.php
http://www.msnbc.msn.com/id/21553970/