Israel has suffered a severe economic blow in the Israeli-Palestinian conflict, which poses a huge challenge for a country with a relatively small economy. According to the latest report from the international credit rating agency Standard & Poor's, the Israeli economy is expected to shrink by 5% in the fourth quarter of this year. This means that economic growth will be severely constrained, putting enormous pressure on Israel's fiscal position.
To understand why Israel can't be like the United States"Make war money"There are a few key factors that we need to consider. First, Israel's military operations are primarily motivated by the need for self-defence, not for economic gain. In contrast to it, the United States conducts military operations usually in its own interests and often uses military force to implement its own strategic objectives, including plundering resources and reaping war dividends. For Israel, the war is fought to protect the security of the country and its inhabitants, not to make a profit.
The second reason is that the military threat facing Israel is more urgent and real. Israel's enemies threaten their security at all times, constantly attacking them. Israel's relatively small territory and limited fighting population put them under greater pressure during military operations. In order to protect its national interests, Israel may have to pay more.
The third reason is that Israel's economic structure is different from that of the United States. Israel's economy is largely based on high-tech and innovative fields, rather than the traditional military-industrial complex. Due to the small size of the country, it is difficult for Israel to build large-scale factories on its territory, so it is not able to combine military production with economic development, as the United States does. The Israeli economy relies more on R&D and exports, as well as on acquiring technology and innovation from the global market.
The Palestinian-Israeli conflict has put tremendous pressure on Israel's economy. According to the Israeli Minister of Finance, the direct cost of the war is currently as high as 2$4.6 billion, which is only the cost of dropping bombs and losing equipment, and does not take into account the hidden costs of personnel** and logistical support. It is estimated that the cost of war per day could reach 7$3.8 billion, that's $22 billion a month. At the same time, the Israeli-Palestinian conflict has caused extensive damage to infrastructure and buildings, requiring huge sums of money to rebuild.
Israel's fiscal deficit has also increased substantially. According to the Standard & Poor's report, the fiscal deficit increased from 23% to 53%, which means that Israel's fiscal situation will be even tighter. It is estimated that Israel's war costs could reach $150 billion in this round of conflict, which is a huge burden for a country with a relatively small economy.
Israel cannot be like the United States"Make war money"There are several main reasons for this. First of all, Israel has a different purpose of military operations from the United States. Israel's military actions are primarily motivated by the need for self-defense, while US military actions are usually motivated by strategic interests and economic purposes. This determines the nature and objectives of the military operations undertaken by the two countries.
Second, the military threat facing Israel is more urgent and real. Israel's security situation is very sensitive, and it is constantly facing threats of war and conflicts from neighboring countries. In order to safeguard the security of the country and its people, Israel has had to endure the corresponding economic and military pressures.
Finally, Israel's economic structure is very different from that of the United States. Israel's economy relies heavily on R&D and innovation, as well as access to technology and innovation from the global market. Due to its small size, Israel could hardly afford large-scale military production and war attrition, nor could it gain economic benefits in the war like the United States.
Israel faces major challenges and must find effective solutions to its economic difficulties. First, they need to maintain peace and stability with neighboring countries in order to reduce the economic burden of military threats. Second, Israel needs to strengthen cooperation with the international community and attract more foreign investment and technology investment to enhance its economic competitiveness and resist external risks.
In addition, Israel should invest more in technology and innovation and further explore new sources of economic growth. By strengthening the development of the technology industry and nurturing innovative talents, Israel can make the most of its strengths and achieve economic diversification and sustainable development. At the same time, Israel needs to invest more in infrastructure and reconstruction to improve the country's resilience to disasters and economic resilience.
The Palestinian-Israeli conflict has brought great challenges to Israel's economy, with economic contraction and fiscal deficits putting tremendous pressure on Israel's fiscal situation. Unlike the United States, Israel's military operations are primarily carried out in self-defense and not for economic gain. In addition, Israel faces a more urgent and real military threat, and its economic structure is different from that of the United States, making it difficult to build large-scale factories on its own soil. Therefore, Israel cannot reap economic benefits from the war as the United States does. Israel should look for other sources of economic growth, strengthen cooperation with the international community, and increase investment in science, technology and innovation in order to achieve economic diversification and sustainable development.