Thursday, December 29, 2016
US aid to israel has been trending down over years
The US still gives Israel about $3 billion (£2 billion) every year in aid. This, they contend, proves that the two countries still have a special relationship.
But a closer look at the aid figures shows the trend is going in exactly the opposite direction to that the critics claim. For a start, the $3 billion aid figure should be set against Israel’s GDP of $320 billion and US GDP of $16.5 trillion. In other words, US aid to Israel is equivalent to about one per cent of Israel’s annual economic output.
A closer look at the figures also shows that, in real terms, the amount of US aid to Israel is steadily trending downwards. A study by the official US Congressional Research Service shows that official US assistance to Israel peaked at about $4.9 billion in 1979 (the year of the overthrow of the pro-Western shah in Iran, as well as the signing of the peace treaty between Israel and Egypt). Converted into current prices, using the official US inflation calculator, that is equivalent to about $15.8 billion in today’s money. In real terms, then, the level of US aid to Israel is running at less than a fifth of what it was running at at its peak. This confirms that the US is distancing itself from Israel. Even if 1979 is regarded as an exceptional year, the amount of US aid to Israel has diminished sharply in real terms over the years.