No decision on aid yet, Rice tells Netanyahu (U.S. aid to Israel)

Globes ^ | 10 March 2003 | Zeev Klein

[anotherview]

No decision on aid yet, Rice tells Netanyahu

Israel’s minister of finance told the US national security advisor: Don’t forget we support you over Iraq.

Zeev Klein 10 Mar 03 09:54

Minister of Finance Benjamin Netanyahu spoke by telephone with US National Security Advisor Condoleezza Rice last night about the loan guarantees Israel is requesting from the US. Rice called Netanyahu and told him that the US administration had taken no decision as yet on the aid package Israel is requesting.

Netanyahu told Rice that “Israel’s economic situation is extremely difficult.” He pointed out that Israel was supporting the US over its position on Iraq, and said he expected the US to give expression to this.

Israel has asked the US for an aid package totaling $12 billion, $8 billion in the form of loan guarantees, and $4 billion as a grant towards security expenditure. From recent reports in the US media, it a[pears that the administration seeks to cut the aid package by 50%, with the largest percentage cut coming in the security grant.

Published by Globes [online] - www.globes.co.il - on March 10, 2003

[JohnGalt]

What kind of "conservative" is reduced to begging for handouts from a foreign country?

End the aid and free the Israeli economy.

[LarryM]

It isn't a matter of freeing the Israeli economy. The reason Israel hasn't crushed the PLO is George Bush. Bush's tying of Israel's hands has been devastating to their economy.

[JohnGalt]

I'm not sure you answered the question, and I wholeheartedly disagree with your assessment that it's not an issue of freeing the economy.

[anotherview]

Your views are, at best, dated. Israel began moving seriously to a free market economy in 1977 when Menachem Begin was elected, and the trend has continued ever since, most recently with the privatization of El Al, Israel's national airline. (There have also been competing, private Israeli airlines, like Tower Air, for years.)

Every successful western economy, including the United States, is a blend of capitalism and socialism. Examples of socialism in the American system include social security and medicare. Does the government build roads in America, or are they all private toll roads? See what I mean?

The one area where Israel is more socialistic that the U.S. national healthcare. Other than that the two systems are remarkably similar nowadays. Heck, even the Labor Party claims to be for a free market, since any other view in Israel today is unpopular at best.

The problem isn't economic regulation. The problems are the heavy dependency on high tech and the ongoing war with the Palestinians. The war has indirect costs, too, like the disappearance of tourism revenues, once very important to the Israeli economy.

Oh, and yes, the U.S. administration does severely restrict how Israel can fight its war.

[waxhaw]

This is some pretty convoluted reasoning. Netanyahu implies that the U.S. needs to fork over yet more billions in U.S. taxpayers' dollars because Israel supports the U.S. vis a vis Iraq. However, it is Israel which will benefit more than any other nation if/when the U.S. moves against Iraq. Instead of gratitude we see yet more pressure for more money.

[anotherview]

I am not at all sure Israel will benefit from Gulf War II. It is very likely that Saddam Hussein will fire more, bigger, better missiles at Israel compared to 1991, and this time they will likely have chemical or biological weapons. Tell me how this benfits Israel.

[mr.pink]

I think it's bad timing by Netanyahu as America's economy is not exaclty firing on all cylinders right now, and the always charitable American taxpayers have many domestic financial anxieties.

After the war is over and won would be better time for this kind of request, IMHO.

[waxhaw]

I'm an American first and my concern is for the U.S. first. Netanyahu's whining about Israel's economic situation when our own economic situation is somewhat grim and for him then to imply that we weren't doing enough when we're about to put U.S. soldiers in harms way is just a little too much for me. As far as the benefit to Israel goes... in destroying Iraq the U.S. will be eliminating Israel's most implacable enemy and while there may very well be missiles launched towards Israel it's going to be U.S. soldiers doing the fighting.

[JohnGalt]

That's absurd on so many levels.

Compare tax rates where Israel has a 50% top rate plus a 36% capital gains tax; or compare one-third of the population working for some part of the government, not including what the military employs.