Tag Archives: Defense Spending

Cost of Living: Israel Leads the World in Per Capita Defense Spending

Pound for Pound – US Aid constitutes less than 1/4 of Israeli Military expenditures..

Much is often made of the US military aid Israel receives, chiefly from Arabists and leftists who oppose all aid to Israel regardless if it is military, or economic as was previously the case. Israel and the US began phasing out all economic based aid starting in the last Netanyahu administration, quite a few years ago. Today, the USA sends Israel approx 3 billion dollars per annum in military aid, of that number 80% of the dollars must be spent with US companies which in effect provides stimulus for both Israel and the US, with the bulk of those billions going back to US military contractors and US based jobs.

As a function of Israel’s GDP, this aid constitutes a small percentage (I think the figure is 2 0r 3%) of Israel’s economic output, and as evidenced by the Economist, Israel does plenty of much needed spending all by itself as well..

Israel was the top defense spender relative to its population in 2008, with the government shelling out more than $2,300 per person, over $300 more than the US, which boasts the second largest ratio, the Economist reported on Monday. According to the report, Israel’s total defense expenditure was $16.2 billion for the year.

The US is by far the largest overall defense spender, with expenses running to some $607 billion, 41.5 percent of the $1.46 trillion spent on defense needs worldwide in 2008.

China emerged as a growing military spender, increasing its expenditure by 10% in 2008 to $85 billion to overtake other countries and become the second-largest global spender behind the US.  Saudi Arabia and the oil rich states of the Gulf also increased their outlay, with the Saudis spending $38.2 billion, which is sixth in terms of population and ninth overall

The bulk of Israel’s expenditures come out of Israel’s economy, and not US Aid as is commonly envisioned by detractors. Despite the world leading per capita figures in Israel, the Saudis outspent us by 2 to 1..  So peace is clearly just around the bend, which must be why the Saudis are calling for the USA to terminate military aid to Israel entirely in order to help out their Palestinian ‘friends’.