Summary
|
Benefits
to Israel of U.S. Aid Since 1949 (As of November 1,
1997)
Foreign Aid Grants and
Loans $74,157,600,000
Other U.S. Aid (12.2% of Foreign
Aid) $9,047,227,200
Interest to Israel from Advanced
Payments $1,650,000,000
Grand
Total $84,854,827,200
Total Benefits per
Israeli $14,630 |
Cost to U.S. Taxpayers of
U.S. Aid to Israel
Grand Total $84,854,827,200
Interest Costs Borne by
U.S. $49,936,680,000
Total Cost to U.S.
Taxpayers $134,791,507,200
Total Cost per
Israeli $23,240 |
Special Reports:
U.S. Aid To Israel: The
Strategic Functions U.S. Aid to Israel:
What
U.S. Taxpayer Should Know U.S. Aid to
Israel: Interpreting
the 'Strategic Relationship' The Cost of
Israel to U.S. Taxpayers: True
Lies About U.S. Aid to Israel
THE
STRATEGIC FUNCTIONS OF U.S. AID TO
ISRAEL By Stephen Zunes
Dr. Zunes is an assistant professor in the Department
of Politics at the University of San Francisco
Since 1992, the U.S.
has offered Israel an additional $2 billion annually in loan
guarantees. Congressional researchers have disclosed that
between 1974 and 1989, $16.4 billion in U.S. military loans
were converted to grants and that this was the understanding
from the beginning. Indeed, all past U.S. loans to Israel have
eventually been forgiven by Congress, which has undoubtedly
helped Israel's often-touted claim that they have never
defaulted on a U.S. government loan. U.S. policy since 1984
has been that economic assistance to Israel must equal or
exceed Israel's annual debt repayment to the United States.
Unlike other countries, which receive aid in quarterly
installments, aid to Israel since 1982 has been given in a
lump sum at the beginning of the fiscal year, leaving the U.S.
government to borrow from future revenues. Israel even lends
some of this money back through U.S. treasury bills and
collects the additional interest.
In addition, there is
the more than $1.5 billion in private U.S. funds that go to
Israel annually in the form of $1 billion in private
tax-deductible donations and $500 million in Israeli bonds.
The ability of Americans to make what amounts to
tax-deductible contributions to a foreign government, made
possible through a number of Jewish charities, does not exist
with any other country. Nor do these figures include short-
and long-term commercial loans from U.S. banks, which have
been as high as $1 billion annually in recent
years.
Total U.S. aid to
Israel is approximately one-third of the American foreign- aid
budget, even though Israel comprises just .001 percent of the
world's population and already has one of the world's higher
per capita incomes. Indeed, Israel's GNP is higher than the
combined GNP of Egypt, Lebanon, Syria, Jordan, the West Bank
and Gaza. With a per capita income of about $14,000, Israel
ranks as the sixteenth wealthiest country in the world;
Israelis enjoy a higher per capita income than oil-rich Saudi
Arabia and are only slightly less well-off than most Western
European countries.
AID does not term
economic aid to Israel as development assistance, but instead
uses the term "economic support funding." Given Israel's
relative prosperity, U.S. aid to Israel is becoming
increasingly controversial. In 1994, Yossi Beilen, deputy
foreign minister of Israel and a Knesset member, told the
Women's International Zionist organization, "If our economic
situation is better than in many of your countries, how can we
go on asking for your
charity?" -------------------------------------------------------------------------
U.S. Aid to
Israel: What U.S. Taxpayer Should
Know
by Tom Malthaner
This morning as I was
walking down Shuhada Street in Hebron, I saw graffiti marking
the newly painted storefronts and awnings. Although three
months past schedule and 100 percent over budget, the
renovation of Shuhada Street was finally completed this week.
The project manager said the reason for the delay and cost
overruns was the sabotage of the project by the Israeli
settlers of the Beit Hadassah settlement complex in Hebron.
They broke the street lights, stoned project workers, shot out
the windows of bulldozers and other heavy equipment with
pellet guns, broke paving stones before they were laid and now
have defaced again the homes and shops of Palestinians with
graffiti. The settlers did not want Shuhada St. opened to
Palestinian traffic as was agreed to under Oslo 2. This
renovation project is paid for by USAID funds and it makes me
angry that my tax dollars have paid for improvements that have
been destroyed by the settlers.
Most Americans are not
aware how much of their tax revenue our government sends to
Israel. For the fiscal year ending in September 30, 1997, the
U.S. has given Israel $6.72 billion: $6.194 billion falls
under Israel's foreign aid allotment and $526 million comes
from agencies such as the Department of Commerce, the U.S.
Information Agency and the Pentagon. The $6.72 billion figure
does not include loan guarantees and annual compound interest
totalling $3.122 billion the U.S. pays on money borrowed to
give to Israel. It does not include the cost to U.S. taxpayers
of IRS tax exemptions that donors can claim when they donate
money to Israeli charities. (Donors claim approximately $1
billion in Federal tax deductions annually. This ultimately
costs other U.S. tax payers $280 million to $390
million.)
When grant, loans,
interest and tax deductions are added together for the fiscal
year ending in September 30, 1997, our special relationship
with Israel cost U.S. taxpayers over $10 billion.
Since 1949 the U.S.
has given Israel a total of $83.205 billion. The interest
costs borne by U.S. tax payers on behalf of Israel are $49.937
billion, thus making the total amount of aid given to Israel
since 1949 $133.132 billion. This may mean that U.S.
government has given more federal aid to the average Israeli
citizen in a given year than it has given to the average
American citizen.
I am angry when I see
Israeli settlers from Hebron destroy improvements made to
Shuhada Street with my tax money. Also, it angers me that my
government is giving over $10 billion to a country that is
more prosperous than most of the other countries in the world
and uses much of its money for strengthening its military and
the oppression of the Palestinian
people. -------------------------------------------------------------------------
"U.S. Aid to
Israel: Interpreting the 'Strategic
Relationship"' by Stephen Zunes
"The U.S. aid
relationship with Israel is unlike any other in the world,"
said Stephen Zunes during a January 26 CPAP presentation. "In
sheer volume, the amount is the most generous foreign aid
program ever between any two countries," added Zunes,
associate professor of Politics and chair of the Peace and
Justice Studies Program at the University of San Francisco.
He explored the
strategic reasoning behind the aid, asserting that it
parallels the "needs of American arms exporters" and the role
"Israel could play in advancing U.S. strategic interests in
the region."
Although Israel is an
"advanced, industrialized, technologically sophisticated
country," it "receives more U.S. aid per capita annually than
the total annual [Gross Domestic Product] per capita of
several Arab states." Approximately a third of the entire U.S.
foreign aid budget goes to Israel, "even though Israel
comprises just . . . one-thousandth of the world's total
population, and already has one of the world's higher per
capita incomes."
U.S. government
officials argue that this money is necessary for "moral"
reasons-some even say that Israel is a "democracy battling for
its very survival." If that were the real reason, however, aid
should have been highest during Israel's early years, and
would have declined as Israel grew stronger. Yet "the pattern
. . . has been just the opposite." According to Zunes, "99
percent of all U.S. aid to Israel took place after the June
1967 war, when Israel found itself more powerful than any
combination of Arab armies . . ."
The U.S. supports
Israel's dominance so it can serve as "a surrogate for
American interests in this vital strategic region." "Israel
has helped defeat radical nationalist movements" and has been
a "testing ground for U.S. made weaponry." Moreover, the
intelligence agencies of both countries have "collaborated,"
and "Israel has funneled U.S. arms to third countries that the
U.S. [could] not send arms to directly, . . . Iike South
Africa, like the Contras, Guatemala under the military junta,
[and] Iran." Zunes cited an Israeli analyst who said: "'It's
like Israel has just become another federal agency when it's
convenient to use and you want something done quietly."'
Although the strategic relationship between the United States
and the Gulf Arab states in the region has been strengthening
in recent years, these states "do not have the political
stability, the technological sophistication, [or] the number
of higher-trained armed forces personnel" as does
Israel.
Matti Peled, former
Israeli major general and Knesset member, told Zunes that he
and most Israeli generals believe this aid is "little more
than an American subsidy to U.S. arms manufacturers,"
considering that the majority of military aid to Israel is
used to buy weapons from the U.S. Moreover, arms to Israel
create more demand for weaponry in Arab states. According to
Zunes, "the Israelis announced back in 1991 that they
supported the idea of a freeze in Middle East arms transfers,
yet it was the United States that rejected it."
In the fall of
1993-when many had high hopes for peace-78 senators wrote to
former President Bill Clinton insisting that aid to Israel
remain "at current levels." Their "only reason" was the
"massive procurement of sophisticated arms by Arab states."
The letter neglected to mention that 80 percent of those arms
to Arab countries came from the U.S. "I'm not denying for a
moment the power of AIPAC [the American Israel Public Affairs
Committee], the pro-Israel lobby," and other similar groups,
Zunes said. Yet the "Aerospace Industry Association which
promotes these massive arms shipments . . . is even more
influential." This association has given two times more money
to campaigns than all of the pro-Israel groups combined. Its
"force on Capitol Hill, in terms of lobbying, surpasses that
of even AIPAC." Zunes asserted that the "general thrust of
U.S. policy would be pretty much the same even if AIPAC didn't
exist. We didn't need a pro-Indonesia lobby to support
Indonesia in its savage repression of East Timor all these
years." This is a complex issue, and Zunes said that he did
not want to be "conspiratorial," but he asked the audience to
imagine what "Palestinian industriousness, Israeli technology,
and Arabian oil money . . . would do to transform the Middle
East. . . . [W]hat would that mean to American arms
manufacturers? Oil companies? Pentagon planners?"
"An increasing number
of Israelis are pointing out" that these funds are not in
Israel's best interest. Quoting Peled, Zunes said, "this aid
pushes Israel 'toward a posture of callous intransigence' in
terms of the peace process." Moreover, for every dollar the
U.S. sends in arms aid, Israel must spend two to three dollars
to train people to use the weaponry, to buy parts, and in
other ways make use of the aid. Even "main-stream Israeli
economists are saying [it] is very harmful to the country's
future."
The Israeli paper
Yediot Aharonot described Israel as "'the godfather's
messenger' since [Israel] undertake[s] the 'dirty work' of a
godfather who 'always tries to appear to be the owner of some
large, respectable business."' Israeli satirist B. Michael
refers to U.S. aid this way: "'My master gives me food to eat
and I bite those whom he tells me to bite. It's called
strategic cooperation." 'To challenge this strategic
relationship, one cannot focus solely on the Israeli lobby but
must also examine these "broader forces as well." "Until we
tackle this issue head-on," it will be "very difficult to win"
in other areas relating to Palestine.
"The results" of the
short-term thinking behind U.S. policy "are tragic," not just
for the "immediate victims" but "eventually [for] Israel
itself" and "American interests in the region." The U.S. is
sending enormous amounts of aid to the Middle East, and yet
"we are less secure than ever"-both in terms of U.S. interests
abroad and for individual Americans. Zunes referred to a
"growing and increasing hostility [of] the average Arab toward
the United States." In the long term, said Zunes, "peace and
stability and cooperation with the vast Arab world is far more
important for U.S. interests than this alliance with
Israel."
This is not only an
issue for those who are working for Palestinian rights, but it
also "jeopardizes the entire agenda of those of us concerned
about human rights, concerned about arms control, concerned
about international law." Zunes sees significant potential in
"building a broad-based movement around it."
The above text is
based on remarks, delivered on. 26 January, 2001 by Stephen .
Zunes - Associate Professor of Politics and Chair of the Peace
and Justice Studies Program at San Francisco
University
-------------------------------------------------------------------------
The Cost of
Israel to U.S. Taxpayers: True Lies About
U.S. Aid to Israel
By Richard H.
Curtiss
For many years the
American media said that "Israel receives $1.8 billion in
military aid" or that "Israel receives $1.2 billion in
economic aid." Both statements were true, but since they were
never combined to give us the complete total of annual U.S.
aid to Israel, they also were lies--true lies.
Recently Americans
have begun to read and hear that "Israel receives $3 billion
in annual U.S. foreign aid." That's true. But it's still a
lie. The problem is that in fiscal 1997 alone, Israel received
from a variety of other U.S. federal budgets at least $525.8
million above and beyond its $3 billion from the foreign aid
budget, and yet another $2 billion in federal loan guarantees.
So the complete total of U.S. grants and loan guarantees to
Israel for fiscal 1997 was $5,525,800,000.
One can truthfully
blame the mainstream media for never digging out these figures
for themselves, because none ever have. They were compiled by
the Washington Report on Middle East Affairs. But the
mainstream media certainly are not alone. Although Congress
authorizes America's foreign aid total, the fact that more
than a third of it goes to a country smaller in both area and
population than Hong Kong probably never has been mentioned on
the floor of the Senate or House. Yet it's been going on for
more than a generation.
Probably the only
members of Congress who even suspect the full total of U.S.
funds received by Israel each year are the privileged few
committee members who actually mark it up. And almost all
members of the concerned committees are Jewish, have taken
huge campaign donations orchestrated by Israel's Washington,
DC lobby, the American Israel Public Affairs Committee
(AIPAC), or both. These congressional committee members are
paid to act, not talk. So they do and they don't.
The same applies to
the president, the secretary of state, and the foreign aid
administrator. They all submit a budget that includes aid for
Israel, which Congress approves, or increases, but never cuts.
But no one in the executive branch mentions that of the few
remaining U.S. aid recipients worldwide, all of the others are
developing nations which either make their military bases
available to the U.S., are key members of international
alliances in which the U.S. participates, or have suffered
some crippling blow of nature to their abilities to feed their
people such as earthquakes, floods or droughts.
Israel, whose troubles
arise solely from its unwillingness to give back land it
seized in the 1967 war in return for peace with its neighbors,
does not fit those criteria. In fact, Israel's 1995 per capita
gross domestic product was $15,800. That put it below Britain
at $19,500 and Italy at $18,700 and just above Ireland at
$15,400 and Spain at $14,300.
All four of those
European countries have contributed a very large share of
immigrants to the U.S., yet none has organized an ethnic group
to lobby for U.S. foreign aid. Instead, all four send funds
and volunteers to do economic development and emergency relief
work in other less fortunate parts of the world.
The lobby that Israel
and its supporters have built in the United States to make all
this aid happen, and to ban discussion of it from the national
dialogue, goes far beyond AIPAC, with its $15 million budget,
its 150 employees, and its five or six registered lobbyists
who manage to visit every member of Congress individually once
or twice a year.
AIPAC, in turn, can
draw upon the resources of the Conference of Presidents of
Major American Jewish Organizations, a roof group set up
solely to coordinate the efforts of some 52 national Jewish
organizations on behalf of Israel.
Among them are
Hadassah, the Zionist women's organization, which organizes a
steady stream of American Jewish visitors to Israel; the
American Jewish Congress, which mobilizes support for Israel
among members of the traditionally left-of-center Jewish
mainstream; and the American Jewish Committee, which plays the
same role within the growing middle-of-the-road and
right-of-center Jewish community. The American Jewish
Committee also publishes Commentary,one of the Israel lobby's
principal national publications.
Perhaps the most
controversial of these groups is B'nai B'rith's
Anti-Defamation League. Its original highly commendable
purpose was to protect the civil rights of American Jews. Over
the past generation, however, the ADL has regressed into a
conspiratorial and, with a $45 million budget, extremely
well-funded hate group.
In the 1980s, during
the tenure of chairman Seymour Reich, who went on to become
chairman of the Conference of Presidents, ADL was found to
have circulated two annual fund-raising letters warning Jewish
parents against allegedly negative influences on their
children arising from the increasing Arab presence on American
university campuses.
More recently, FBI
raids on ADL's Los Angeles and San Francisco offices revealed
that an ADL operative had purchased files stolen from the San
Francisco police department that a court had ordered destroyed
because they violated the civil rights of the individuals on
whom they had been compiled. ADL, it was shown, had added the
illegally prepared and illegally obtained material to its own
secret files, compiled by planting informants among
Arab-American, African-American, anti-Apartheid and peace and
justice groups.
The ADL infiltrators
took notes of the names and remarks of speakers and members of
audiences at programs organized by such groups. ADL agents
even recorded the license plates of persons attending such
programs and then suborned corrupt motor vehicles department
employees or renegade police officers to identify the
owners.
Although one of the
principal offenders fled the United States to escape
prosecution, no significant penalties were assessed. ADL's
Northern California office was ordered to comply with requests
by persons upon whom dossiers had been prepared to see their
own files, but no one went to jail and as yet no one has paid
fines.
Not surprisingly, a
defecting employee revealed in an article he published in the
Washington Report on Middle East Affairs that AIPAC, too, has
such "enemies" files. They are compiled for use by pro-Israel
journalists like Steven Emerson and other so-called "terrorism
experts," and also by professional, academic or journalistic
rivals of the persons described for use in black-listing,
defaming, or denouncing them. What is never revealed is that
AIPAC's "opposition research" department, under the
supervision of Michael Lewis, son of famed Princeton
University Orientalist Bernard Lewis, is the source of this
defamatory material.
But this is not
AIPAC's most controversial activity. In the 1970s, when
Congress put a cap on the amount its members could earn from
speakers' fees and book royalties over and above their
salaries, it halted AIPAC's most effective ways of paying off
members for voting according to AIPAC recommendations. Members
of AIPAC's national board of directors solved the problem by
returning to their home states and creating political action
committees (PACs).
Most special interests
have PACs, as do many major corporations, labor unions, trade
associations and public-interest groups. But the pro-Israel
groups went wild. To date some 126 pro-Israel PACs have been
registered, and no fewer than 50 have been active in every
national election over the past generation.
An individual voter
can give up to $2,000 to a candidate in an election cycle, and
a PAC can give a candidate up to $10,000. However, a single
special interest with 50 PACs can give a candidate who is
facing a tough opponent, and who has voted according to its
recommendations, up to half a million dollars. That's enough
to buy all the television time needed to get elected in most
parts of the country.
Even candidates who
don't need this kind of money certainly don't want it to
become available to a rival from their own party in a primary
election, or to an opponent from the opposing party in a
general election. As a result, all but a handful of the 535
members of the Senate and House vote as AIPAC instructs when
it comes to aid to Israel, or other aspects of U.S. Middle
East policy.
There is something
else very special about AIPAC's network of political action
committees. Nearly all have deceptive names. Who could
possibly know that the Delaware Valley Good Government
Association in Philadelphia, San Franciscans for Good
Government in California, Cactus PAC in Arizona, Beaver PAC in
Wisconsin, and even Icepac in New York are really pro-Israel
PACs under deep cover?
Hiding AIPAC's
Tracks
In fact, the
congressmembers know it when they list the contributions they
receive on the campaign statements they have to prepare for
the Federal Election Commission. But their constituents don't
know this when they read these statements. So just as no other
special interest can put so much "hard money" into any
candidate's election campaign as can the Israel lobby, no
other special interest has gone to such elaborate lengths to
hide its tracks.
Although AIPAC,
Washington's most feared special-interest lobby, can hide how
it uses both carrots and sticks to bribe or intimidate members
of Congress, it can't hide all of the results.
Anyone can ask one of
their representatives in Congress for a chart prepared by the
Congressional Research Service, a branch of the Library of
Congress, that shows Israel received $62.5 billion in foreign
aid from fiscal year 1949 through fiscal year 1996. People in
the national capital area also can visit the library of the
U.S. Agency for International Development (USAID) in Rosslyn,
Virginia, and obtain the same information, plus charts showing
how much foreign aid the U.S. has given other countries as
well.
Visitors will learn
that in precisely the same 1949-1996 time frame, the total of
U.S. foreign aid to all of the countries of sub-Saharan
Africa, Latin America and the Caribbean combined was
$62,497,800,000--almost exactly the amount given to tiny
Israel.
According to the
Population Reference Bureau of Washington, DC, in mid-1995 the
sub-Saharan countries had a combined population of 568
million. The $24,415,700,000 in foreign aid they had received
by then amounted to $42.99 per sub-Saharan African.
Similarly, with a
combined population of 486 million, all of the countries of
Latin America and the Caribbean together had received
$38,254,400,000. This amounted to $79 per person.
The per capita U.S.
foreign aid to Israel's 5.8 million people during the same
period was $10,775.48. This meant that for every dollar the
U.S. spent on an African, it spent $250.65 on an Israeli, and
for every dollar it spent on someone from the Western
Hemisphere outside the United States, it spent $214 on an
Israeli.
Shocking
Comparisons
These comparisons
already seem shocking, but they are far from the whole truth.
Using reports compiled by Clyde Mark of the Congressional
Research Service and other sources, freelance writer Frank
Collins tallied for theWashington Report all of the extra
items for Israel buried in the budgets of the Pentagon and
other federal agencies in fiscal year 1993.Washington Report
news editor Shawn Twing did the same thing for fiscal years
1996 and 1997.
They uncovered $1.271
billion in extras in FY 1993, $355.3 million in FY 1996 and
$525.8 million in FY 1997. These represent an average increase
of 12.2 percent over the officially recorded foreign aid
totals for the same fiscal years, and they probably are not
complete. It's reasonable to assume, therefore, that a similar
12.2 percent hidden increase has prevailed over all of the
years Israel has received aid.
As of Oct. 31, 1997
Israel will have received $3.05 billion in U.S. foreign aid
for fiscal year 1997 and $3.08 billion in foreign aid for
fiscal year 1998. Adding the 1997 and 1998 totals to those of
previous years since 1949 yields a total of $74,157,600,000 in
foreign aid grants and loans. Assuming that the actual totals
from other budgets average 12.2 percent of that amount, that
brings the grand total to $83,204,827,200.
But that's not quite
all. Receiving its annual foreign aid appropriation during the
first month of the fiscal year, instead of in quarterly
installments as do other recipients, is just another special
privilege Congress has voted for Israel. It enables Israel to
invest the money in U.S. Treasury notes. That means that the
U.S., which has to borrow the money it gives to Israel, pays
interest on the money it has granted to Israel in advance,
while at the same time Israel is collecting interest on the
money. That interest to Israel from advance payments adds
another $1.650 billion to the total, making it
$84,854,827,200.That's the number you should write down for
total aid to Israel. And that's $14,346 each for each man,
woman and child in Israel.
It's worth noting that
that figure does not include U.S. government loan guarantees
to Israel, of which Israel has drawn $9.8 billion to date.
They greatly reduce the interest rate the Israeli government
pays on commercial loans, and they place additional burdens on
U.S. taxpayers, especially if the Israeli government should
default on any of them. But since neither the savings to
Israel nor the costs to U.S. taxpayers can be accurately
quantified, they are excluded from consideration
here.
Further, friends of
Israel never tire of saying that Israel has never defaulted on
repayment of a U.S. government loan. It would be equally
accurate to say Israel has never been required to repay a U.S.
government loan. The truth of the matter is complex, and
designed to be so by those who seek to conceal it from the
U.S. taxpayer.
Most U.S. loans to
Israel are forgiven, and many were made with the explicit
understanding that they would be forgiven before Israel was
required to repay them. By disguising as loans what in fact
were grants, cooperating members of Congress exempted Israel
from the U.S. oversight that would have accompanied grants. On
other loans, Israel was expected to pay the interest and
eventually to begin repaying the principal. But the so-called
Cranston Amendment, which has been attached by Congress to
every foreign aid appropriation since 1983, provides that
economic aid to Israel will never dip below the amount Israel
is required to pay on its outstanding loans. In short, whether
U.S. aid is extended as grants or loans to Israel, it never
returns to the Treasury.
Israel enjoys other
privileges. While most countries receiving U.S. military aid
funds are expected to use them for U.S. arms, ammunition and
training, Israel can spend part of these funds on weapons made
by Israeli manufacturers. Also, when it spends its U.S.
military aid money on U.S. products, Israel frequently
requires the U.S. vendor to buy components or materials from
Israeli manufacturers. Thus, though Israeli politicians say
that their own manufacturers and exporters are making them
progressively less dependent upon U.S. aid, in fact those
Israeli manufacturers and exporters are heavily subsidized by
U.S. aid.
Although it's beyond
the parameters of this study, it's worth mentioning that
Israel also receives foreign aid from some other countries.
After the United States, the principal donor of both economic
and military aid to Israel is Germany.
By far the largest
component of German aid has been in the form of restitution
payments to victims of Nazi attrocities. But there also has
been extensive German military assistance to Israel during and
since the Gulf war, and a variety of German educational and
research grants go to Israeli institutions. The total of
German assistance in all of these categories to the Israeli
government, Israeli individuals and Israeli private
institutions has been some $31 billion or $5,345 per capita,
bringing the per capita total of U.S. and German assistance
combined to almost $20,000 per Israeli. Since very little
public money is spent on the more than 20 percent of Israeli
citizens who are Muslim or Christian, the actual per capita
benefits received by Israel's Jewish citizens would be
considerably higher.
True Cost to U.S.
Taxpayers
Generous as it is,
what Israelis actually got in U.S. aid is considerably less
than what it has cost U.S. taxpayers to provide it. The
principal difference is that so long as the U.S. runs an
annual budget deficit, every dollar of aid the U.S. gives
Israel has to be raised through U.S. government
borrowing.
In an article in the
Washington Report for December 1991/January 1992, Frank
Collins estimated the costs of this interest, based upon
prevailing interest rates for every year since 1949. I have
updated this by applying a very conservative 5 percent
interest rate for subsequent years, and confined the amount
upon which the interest is calculated to grants, not loans or
loan guarantees.
On this basis the
$84.8 billion in grants, loans and commodities Israel has
received from the U.S. since 1949 cost the U.S. an additional
$49,936,880,000 in interest.
There are many other
costs of Israel to U.S. taxpayers, such as most or all of the
$45.6 billion in U.S. foreign aid to Egypt since Egypt made
peace with Israel in 1979 (compared to $4.2 billion in U.S.
aid to Egypt for the preceding 26 years). U.S. foreign aid to
Egypt, which is pegged at two-thirds of U.S. foreign aid to
Israel, averages $2.2 billion per year.
There also have been
immense political and military costs to the U.S. for its
consistent support of Israel during Israel's half-century of
disputes with the Palestinians and all of its Arab neighbors.
In addition, there have been the approximately $10 billion in
U.S. loan guarantees and perhaps $20 billion in tax-exempt
contributions made to Israel by American Jews in the nearly
half-century since Israel was created.
Even excluding all of
these extra costs, America's $84.8 billion in aid to Israel
from fiscal years 1949 through 1998, and the interest the U.S.
paid to borrow this money, has cost U.S. taxpayers $134.8
billion, not adjusted for inflation. Or, put another way, the
nearly $14,630 every one of 5.8 million Israelis received from
the U.S. government by Oct. 31, 1997 has cost American
taxpayers $23,240 per Israeli.
It would be
interesting to know how many of those American taxpayers
believe they and their families have received as much from the
U.S. Treasury as has everyone who has chosen to become a
citizen of Israel. But it's a question that will never occur
to the American public because, so long as America's
mainstream media, Congress and president maintain their pact
of silence, few Americans will ever know the true cost of
Israel to U.S.
taxpayers. ------------------ Richard
Curtiss, a retired U.S. foreign service officer, is the
executive editor of the Washington Report on Middle East
Affairs. |