Israel’s war in Gaza is leaving behind not just devastation in Palestinian communities, but also wrecking Israel’s own economy — and yet, Washington keeps footing the bill.
What experts are now calling a “zombie economy” is staggering forward only because of U.S. loan guarantees. Without American backing, foreign investors wouldn’t touch Israeli bonds, since everyone knows the country has no realistic way to pay them back. That means U.S. taxpayers are effectively propping up a war machine that has destroyed Gaza while dragging Israel into economic freefall.
The reality on the ground doesn’t lie: shuttered hotels, empty holy sites, and mass unemployment among Palestinians and Israelis alike. Maariv, one of Israel’s largest newspapers, described the situation bluntly on July 10, 2024: Israel has become a “country in collapse.”
The numbers are staggering. Roughly 46,000 Israeli businesses have been forced to shut down since October 7, 2024. About 77% of those closures — around 35,000 — were small businesses with fewer than five employees. These aren’t multinational corporations that can weather a storm; these are family-owned restaurants, shops, and service providers that make up the backbone of any economy.
Meanwhile, foreign investments have cratered, tourism has dried up, and even one of Israel’s ports has gone bankrupt. Without constant U.S. intervention to cover their debts, Israel would be facing a full-scale financial collapse. As Yoel Amir, CEO of Israeli credit risk management firm CofaceBdi, put it: “This is a very high number that encompasses many sectors.”
Instead of facing reality, Israel is burning through its economy to finance an endless military campaign — and it’s dragging Americans with it. Our leaders keep writing checks while average Americans are crushed by inflation, debt, and open borders at home.
At what point do we say enough is enough? Why should U.S. taxpayers keep underwriting a foreign war that is bankrupting both Palestinians and Israelis, while Washington ignores the crises here in America?
The truth is, Israel’s economy isn’t surviving. It’s collapsing. And the only thing keeping it from total implosion is the American taxpayer.
See for yourself just how bad things have gotten in Israel by watching this breakdown: