During the 1950s and 60s, Israel’s economy grew at an average rate of 5.6%. Once Jerusalem began accepting United States aid in 1973, Israel’s average annual growth rate plummeted to roughly 1.5% over the next 25 years.

*Yuval Levin, American Aid to the Middle East: A Tragedy of Good Intentions, Institute for Advanced Strategic and Political Studies (IASPS), December 2000, p. 14.

Over 70% of the aid Israel receives must be spent in the United States, essentially making the money a government subsidy to America’s military industrial complex.

*Jeremy Sharp, U.S. Foreign Aid to Israel, Congressional Research Service, Washington, D.C., March 2012, p. 7.

As a result, Israeli companies lose their own military as a client and the IDF is forced to purchase American products that are often more expensive and qualitatively inferior to Israeli products.

*Yarden Gazit, Economic & Strategic Ramifications of American Assistance to Israel, Jerusalem Institute of Market Studies (JIMS), January 2011, pp. 3-4.

Like in other developing countries, foreign aid enriches Israel’s ruling class while keeping the masses impoverished and pushing the country into debt.

*Zev Golan, A Tour of the Israeli Economy, Institute for Advanced Strategic and Political Studies (IASPS), Jerusalem, 1998, pp. 3-4.

Because United States aid to Israel is tied to US aid to Israel’s potential enemies in the region, Israel must spend at least $1.60 for every dollar it receives in order to maintain a qualitative military edge.

*Yarden Gazit, Economic & Strategic Ramifications of American Assistance to Israel, Jerusalem Institute of Market Studies (JIMS), January 2011, p. 3.