Saturday, August 29, 2015

Israel, the U.S. and You!




Nigel, a knowledgeable friend of a friend, sent this letter.  He says he was sick of reading about U.S. aid to Israel from people who "were really nasty, misguided, and probably Anti-Semitic.  ...  

"Why," he wonders, "do the same idiots spout the same old lies and restate the same old B.S.?"

What follows is what one man wrote in defense of Israel and against the "nasty, misguided, and probably Anti-Semitic" people. 

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Israel receives money to purchase U.S. weapons made by U.S. companies, including Boeing, Lockheed Martin, Raytheon, Northrop Grumman, General Dynamics, L-3 Communications, etc. These are all U.S. Companies with U.S. employees and U.S. manufacturing footprints.

About 1/3 of the money from the U.S. to Israel goes directly back to the U.S. Treasury through taxes. The other 2/3 goes to companies which employ U.S. workers and are owned by U.S. taxpayers. 

All capital gains, share repurchases, and dividend payments are eventually taxed with proceeds again going to the U.S. Treasury. So it takes a bit of time, but all money provided to Israel for weapons/arms purchases comes back to the U.S. Treasury. 

Since the money comes back to the U.S. Treasury after earning a return, the U.S. taxpayer actually makes money on the whole transaction. For example, if Boeing earns a 10% return on all invested capital, the taxpayer receives the remaining 2/3 at 10% interest.

This is far higher than the U.S. government can earn investing in U.S. government bonds. So you can stop whining. There is a delay, but the U.S. taxpayer actually comes out ahead in the end.

Now what does the U.S. get in addition to the return of its money?

1) Israel keeps American scientists, engineers, and manufacturers employed. As King Obama cuts military spending, Israel picks up the slack so that American defense workers aren't fired and join the food stamp lines.  [Editorial note:  "King Obama" doesn't cut military spending and has not done so!  The Pentagon continues to dominate the U.S. budget  and will doubtless do so for the foreseeable future!]
 
2) Israel buys America's most sophisticated systems and weapons, which Israel always upgrades as Israel is the 2nd most important technical center in the world. Israel always informs the U.S. of these improvements, so the U.S. receives invaluable RESEARCH AND DEVELOPMENT for free. These improvements are often included in the weapons the U.S. employs at home and around the world to protect us. Not too shabby.

3) Israel is basically an extremely large and powerful U.S. military base. It would cost the U.S. 25x to run its own bases in the region if it tried to recreate Israel's footprint. The U.S. uses Israel as a first line defense against the Muslim terrorists including Iran and ISIS.
 
So from the U.S. taxpayers' prospective, the U.S. gets to outsource a very highly trained and skilled military on the cheap. And while the U.S. has military bases elsewhere in the Middle East, they are much smaller, very expensive to operate, aren't permanent, and aren't safe to house our most powerful weapons.
 
4) If the U.S. is ever attacked by Iran or other Muslim countries with missiles, the Iron Dome System (which Israel and the US. jointly developed) and other systems being developed will be used to shoot down those missiles. The system works so well because it has been extensively field tested to knock down the Hamas rockets.
 
What many Americans don't realize is that Israel has effectively become the 51st state. Nearly every S&P 500 company has an Israeli division. And a huge amount of Israeli technology is inside every smart phone, router, and computer. If you used your smart phone today to make a call or access the internet, you've used Israeli technology (lots of it in fact). 

Unlike China which just provides cheap labor and cheap manufacturing and then steals our technology, Israeli technology helps to make U.S. products and services better. From Apple to Intel to Facebook to Cisco, nearly every tech company shaping our world today and tomorrow has assets in Israel which benefit U.S. consumers and taxpayers. Without Israel, a major R&D center for the entire U.S. Fortune 500 would simply not exist.
 
Also, there is no Muslim country that would ever fight for the U.S. (air power and boots on the ground) in any significant way. The U.S. outsources the second best air force in the world for FREE. Why do I say free? Because the Israeli government provides the top shelf pilots, training exercises, and bases. Israel, by taking on Hamas and Hezbollah, has already been fighting (and bleeding) for U.S. interests. And if Iran were to ever to get close to attacking the U.S. with missiles, Israel would without delay attack on our behalf. That is meaningful and irreplaceable.
 
P.S. - Your life has probably already been saved by technology developed in Israel. Israeli doctors, scientists, and researchers are working at the bleeding edge of nearly every medical advancement. Moreover, just about every major American pharma, biotech, and medical device company employees Israelis for their superior skills and educations.
If you see a paralyzed American soldier walking with robotic limbs, that is Israeli technology. And if you or your family members have been sick in the past 10 years, they've been helped by Israeli medical innovations. 

Though the doctors treating you won't tell you (they probably won't even know), your life will likely be saved by some very smart Israelis working half-way around the world for the betterment of humankind.
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