Under fire, undermanned: Israel's wartime economy soldiers on

As the initial shock of the attack began to dissipate, a new problem became apparent.

At least 125,000 Israelis were forced to leave their homes near Gaza and in the north, where cross-border strikes from Lebanese militants Hezbollah have become a daily ritual.

Meanwhile, more than 360,000 army reservists were mobilised to fight as Israel carries out a ground campaign in Gaza, where the Hamas government says more than 12,300 people have been killed, most of them civilians.

In a nation numbering only nine million, the reduction in the available labour force has had huge economic consequences.

Over its 75 years of existence, Israel has regularly been at war with its neighbours.

But "all Israeli-Arab conflicts in previous years were relatively minor compared to the war today", according to economist Benjamin Bental of the Taub Center, an Israeli think tank.

Some industries are worse affected than others. "The construction sector is blocked," Bental said, as it relied so heavily on Palestinian labourers with travel permits, which have now been cancelled due to the war.

Hospitality has also lagged as consumer confidence has slumped. Business is slow at bars and restaurants in major cities with tourists staying away.

Overall, credit card transactions dropped 10 percent after October 7, and then 20 percent as Israel began its ground invasion of the densely populated Gaza Strip, according to economist Bental.

The resilience of the tech industry, which makes up 18 percent of GDP, will prove decisive.

The hamas operates without uniforms or clear distinctions marking them as combatants. They’re ALL civilians and thats why they’re operating outside of the protections of geneva conventions. So, i’m unimpressed when the media parades around the number of ‘civilians’ killed by israeli retaliations, when the hamas employs 10yr old kids in their rape and murder spree in israeli border towns and concert venues during a holiday.

Ut oh, taxpayers better hold onto their wallets. Here we go again.

Since 1973, Israel has received more than
$120 billion US tax dollars in MILITARY assistance alone,
including “three special US aid” packages:
<>US billions just for signing the Israel-Egypt peace treaty
<>US billions just for Israel’s withdrawal from the Sinai.
<>US billions just for redeployment of Israeli forces
<>rebuilding Israeli air bases in the Negev cost US taxpayers $5 billion.

Besides weaponry, Israel also receives billions in
<><> US economic and US humanitarian foreign aid,
<><>US tax dollars to support Israel’s broad economic development,
<><>US tax dollars to support sociopolitical stability,
<><> and non-military support related to Israel’s pressing security needs.

Military aid and armaments from US taxpayers have blanketed Israel over the years. They have more than enough resources, now, to nail Hamas and Hezbollah. Wealthy Israel has very low debt, and actually had a budget surplus this year.

The US is $33 trillion in debt, a debt which future generations are saddled with.

And let’s not forget, an integral part of the billions of US tax dollars flowing to Israel is that US aid is conditioned on Israel sharing w/ the US, the crucial intel Israel gathers in the volatile Mideast.

Clearly that did not happen vis a vis 9/11 when 4000 Americans lost their lives. We should have been warned since we had given Israel billions of tax dollars......plus 9/11 was plotted in Israel’s backyard.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.