How American Tax Dollars Prop Up Israel’s Zombie Economy, by GenXGirl

Much of Israel’s “miracle” economy has been paid for by the U.S. From GenXGirl at tlavagabond.com:

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For decades, the unwavering support of the U.S. government for Israel has consistently prioritized Israeli interests, often at the expense of American taxpayers and their constitutional rights. Economist Thomas Stauffer estimated that U.S. support for Israel cost taxpayers $1.6 trillion between 1973 and 2002. Using his formula, a conservative estimate places that cost at approximately $3 trillion by 2024 which is equivalent to 8% of the current $37 trillion US national debt. As global sentiment shifts and Israel faces increasing economic and diplomatic sanctions, the U.S. government is taking drastic measures to shield it, damaging both American economic interests and the nation’s international standing.

Israel

Israel’s Zombie Economy

Israel’s economy is under significant strain as a result of its genocide campaign in Gaza and to a lesser extent, the West Bank, prompting increased U.S. intervention. Key vulnerabilities include:

  • Zombie Economy: While information about Israel’s struggling economy is not widely discussed in the west, Israeli economists such as Dr. Shir Hever have concluded Israel heavily relies on foreign investments and loans to remain viable, otherwise, it is a Zombie economy.
  • BDS Impact: The Boycott, Divestment, and Sanctions (BDS) movement is reducing foreign investment.
  • Tech Sector Collapse: A 90% drop in tech investments has exacerbated economic instability.
  • Tourism: Israel’s tourism industry has stopped.
  • Port Damage/Bankruptcy: Eilat Port declared bankruptcy in 2024 while other ports have been damaged during Israel’s war with Iran.
  • Weapons Dependency: While Israel buys weapons from the U.S. using American taxpayer money, it depends on European supply chains that are increasingly imposing sanctions.

Israel’s economy contracted in Q2 2025, primarily due to the severely disruptive 12-day war with Iran in June.

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2 responses to “How American Tax Dollars Prop Up Israel’s Zombie Economy, by GenXGirl”

  1. They have first world infrastructure and free healthcare while we have fourth world cities and people living under the overpass.

    The rail line between Tel Aviv and Jerusalem is just under high speed rail.

    It reaches a point of enough is enough.

  2. Pingback: How American Tax Dollars Prop Up Israel’s Zombie Economy, by GenXGirl — Der Friedensstifter

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