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Q: U.S. Economic Support of Israel ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: U.S. Economic Support of Israel
Category: Business and Money > Economics
Asked by: jonesy-ga
List Price: $5.00
Posted: 23 Nov 2003 07:38 PST
Expires: 23 Dec 2003 07:38 PST
Question ID: 279639
Should there be peace between Israel and Palestine, how would this
affect the U.S. economy?
Answer  
Subject: Re: U.S. Economic Support of Israel
Answered By: politicalguru-ga on 24 Nov 2003 05:03 PST
Rated:4 out of 5 stars
 
Dear Jonesy, 

Thank you for your question. 

While no one could foresee the future, there are several elements that
give us a clearer picture on what might occur as a result of peace
between the Israelis and the Palestinians.

The peace accord between Israel and Egypt was signed in 1979. As part
of this agreement, both countries receive aid from the United States,
which makes them the two main aid-recipients from the United States.
Most of the aid is in fact an allowance, giving these countries grants
that could be used only for a certain purpose: buying a certain
product from the United States (or from US companies).

If we rely on this agreement, we could expect that the Palestinians,
as well, will become a major aid-recipient, buying products from US
industries but also getting direct aid and funding. This could have -
all in all - negative impact on the American economy (although I am
not sure that the type of funds is really substantial).

On the other hand, much of the ground of Israel's reliance on military
aid could cease, since it relies on the fact that Israel continuously
fights to maintain its existence. With three of its five borders
secured, military aid to Israel might be lowered.

Further Reading
===============
Washington Report on Middle East Affairs
<http://www.wrmea.com/html/us_aid_to_israel.htm> - summary and
explanations on the aid, from an adversary point of view.

Sustain Campaign <http://www.sustaincampaign.org/> - a Pro-Palestinian
organisation, lobbying to stop US aid to Israel.

Jewish Library <http://www.us-israel.org/jsource/US-Israel/foreign_aid.html>
- an article on the US aid. Pro-Israel site.

AISH <http://www.aish.com/jewishissues/middleeast/U.S._Aid_To_Israel.asp>
- a review of aid-recipients in the Middle East (pro-Israeli).

I hope this answered your question. I searched the Internet for [us
aid Israel] to find answers. Please contact me if you need any further
clarification on this answer before you tip/rate it.
jonesy-ga rated this answer:4 out of 5 stars
Thanks for the help, and the quick response.  You were very helpful

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