Palestine problem hopeless, but not serious

"The situation for the Palestinian people is intolerable," declared United Sates President Barack Obama in his June 4 Cairo address. Really? Compared to what? Things are tough all over. The Palestinians are one of many groups displaced by the population exchanges that followed World War II, and the only ones whose great-grandchildren still have the legal status of refugees. Why are they still there? The simplest explanation is that they like it there, because they are much better off than people of similar capacities in other Arab countries.

The standard tables of gross domestic product (GDP) per capital show the West Bank and Gaza at US$1,700, just below Egypt's $1,900 and significantly below Syria's $2,250 and Jordan's $3,000. GDP does not include foreign aid, however, which adds roughly 30% to spendable funds in the Palestinian territories. Most important, the denominator of the GDP per capita equation - the number of people - is far lower than official data indicate. According to an authoritative study by the Begin-Sadat Center for Strategic Studies [1], the West Bank and Gaza population in 2004 was only 2.5 million, rather than the 3.8 million claimed by the Palestinian authorities. The numbers are inflated to increase foreign aid.

Adjusting for the Begin-Sadat Center population count and adding in foreign aid, GDP per capita in the West Bank and Gaza comes to $3,380, much higher than in Egypt and significantly higher than in Syria or Jordan. Why should any Palestinian refugee resettle in a neighboring Arab country?

GDP per capita, moreover, does not reflect the spending power of ordinary people. Forty-four percent of Egyptians, for example, live on less than $2 a day, the United Nations estimates. The enormous state bureaucracy eats up a huge portion of national income.

This is the dirty little secret of many "enclave" regions.

The Basques in Spain kill a few people once in a while, but without the social safety net of wealthy Spain, they'd be suckin' wind and they know it. Keep it boiling. More money. It's a formula that works, why screw with it?

Ditto, the folks in Northern Ireland, who wouldn't dream of giving up their British welfare benefits to join the Republic, but feel honor-bound to protest otherwise. They doth protest too much, as they take the Queen's shillings.

Even the don't-wanna-be Italians in the Tyrol ain't stupid, and know they have a really cool deal, and won't make anywhere near as much money in benefits, tax breaks, and special perks as Austrians. (BTW as far as terrorists go, they are really quite polite, warning everyone well in advance when they are going to set off a cherry bomb in a derelict car, usually around 2AM near, but not too near, the police station.)

The Palestinians are considered spoiled rich kids by the other Arabs ... btw ... they mostly ain't Arabs as far as real Arabs are concerned ... and they have enough money to buy every man-jack of them 40 acres and a camel somewhere else. The fact of the matter is tthey live pretty darn well even in their wretchedly unnecessary camps, compared to other Muslims. They are determined to live their lives as useful to the Islamic jihad in an annoying ... and deadly to them ... irritant role. No sympathy here.

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