As Israel Wages Genocide, Its Economy Is Buckling
To maintain his hold on power, Benjamin Netanyahu is pursuing a brutal forever war against Palestinians. But the costs aren’t just in human lives: Israel’s economy may not be able to sustain this war.
Israeli prime minister Benjamin Netanyahu addresses the media at the Defence Ministry in Tel Aviv on November 12, 2019. (Gil Cohen-Magen / AFP via Getty Images)
Global media have cast a spotlight on Israel’s genocide in Gaza. Rightly so: the suffering of Gazans is unbearable. But in doing so, it has missed another crucial part of the story: the impact the war is having on the Israeli economy and Israelis themselves.
Four hundred thousand Israel Defense Forces (IDF) soldiers have served extended tours of duty in Gaza, the West Bank, and northern Israel. They have left families and jobs and, in many cases, lost their businesses. In addition, almost 250,000 Israelis have become refugees due to fighting with Hezbollah. This has had a massive impact on the Israeli economy. Economic growth and GDP have plummeted.
Forty-six thousand businesses have failed since October 7. That number will increase to sixty thousand by the end of 2024. This has a ripple effect throughout the economy. Bankruptcies hit the bottom line of the lenders who extended credit to the failed businesses. Vendors and suppliers also take a hit, while the lives of many small business owners have been reduced to shambles. They have sunk into debt and often are forced to rely on handouts from friends, family, and charities:
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