The Case for Ending Aid to Israel | Doug Bandow | Cato Institute: Commentary

The Case for Ending Aid to Israel | Doug Bandow | Cato Institute: Commentary: "Money from America has conditions, most notably the requirement that Israel purchase U.S. weapons, which raises Israeli acquisition costs. Gazit estimated that America’s “gift” may cost around $600 million. That’s a fifth of the nominal “foreign aid.” That money, at least, is primarily a subsidy to U.S. arms makers.

Washington also links aid between Israel and Egypt. The latter typically receives two-thirds of whatever Israel collects. The transformation across the Nile could upend the arrangement, especially if Cairo abandons peace with Israel, but so far the relationship continues.

Jordan, too, receives bountiful American subsidies—about $700 million last year."

"Thus, the more money given by America to Egypt and Jordan, the more Israel must spend on its military."

"Not only does American assistance not provide Israel with an economic advantage, it requires Israel to expend additional amounts from its own internal security reserves."

The article gives details on how it also hurts their defense contractors.

"The guaranteed payment irrespective of Israel’s defense needs “leaves the system with no incentive to become more efficient,” warns Gazit. Former prime minister Ehud Olmert argued that Israel could cut its military outlays with no harm to its security but that American money reduces the pressure to do so."

"Perhaps even worse is how U.S. “assistance” further inflates Israel’s already bloated government."