?Israel and the Economy in Times of War?: How to Manage the Crisis? And Who Pays the Price

 Written by Dr-Anas-AlMahi and translating by us

For more than two years, the Zionist entity has been in a state of constant turmoil, with no let-up in the fronts and no quieting of the guns. This turmoil extends from the West Bank and Gaza Strip, through southern Lebanon, to the escalating tensions with Iran at sea, on land, and in the air.

While bombs fall and the drums of war beat, the most important question arises: how does Israel cope with this massive economic drain? Indeed, how does it continue to finance a multi-front war without a profound impact on its economy or clear ripples in its social system?

It’s no secret that the United States is the primary and largest supporter of the Israeli military machine, whether through direct aid, arms deals, or even absolute political support in international forums. This is evident in Israel’s permanent veto of any resolution. However, the daily cost of the war, borne by Israel since October 2023, has exceeded the limits of traditional funding. The cost of operating the army, transporting soldiers, supplying ammunition, compensating those affected, and rebuilding what has been bombarded internally are all elements that would strain any economy, no matter how resilient.

Will America and its cronies continue to fund this war forever? Or is Washington, suffering internally from escalating economic and political crises, now viewing Gaza as a strategic burden and seeking to recycle the conflict in a way that guarantees Israel’s security without endlessly draining its resources?

In every war waged by Israel, official statements repeat the same refrain: “Limited losses, the army is in control, the enemy is suffering the greatest losses.” But in this protracted war, where confrontations are raging with violent and trained resistance movements such as Hamas and Hezbollah, and perhaps even explicit threats from Tehran, it is logical to ask: Where are Israel’s losses?

Is it conceivable that a small entity surrounded by millions of enemies could continue to wage an open war for more than two years without paying a real price in lives? Independent reports and information leaking from military hospitals speak of hundreds of dead and wounded, but without a clear official announcement. Is Israel resorting to a policy of secrecy to keep its people’s morale high? Or have the mercenaries it has long used in its secret battles become the fuel for the battle?

The recurring talk in American circles about placing the Gaza Strip under “temporary administration,” “international American trusteeship,” or even “transforming it into a special economic zone” cannot be considered innocent. It seems that Gaza, with its unique geographical location, coastal expanse, and untapped offshore gas resources, has become a major economic and strategic ambition for both Israel and the United States.

Perhaps this explains the Israeli-American insistence on invading Gaza, dismantling the resistance structure, and taking full control of the Strip, or at least reshaping it to suit their interests. This is not just a war against terrorism, but a war for land, resources, and future projects.

Israel is certainly trying to maintain its economic cohesion by reducing civilian spending, increasing taxes, and relying on external support, especially from the United States and France, but the continuation of this hemorrhage cannot pass without repercussions. Its stubbornness in continuing the war, despite the human and economic losses, suggests that grand plans lie ahead, perhaps including redrawing the geopolitical map of the region, with Gaza as the center of gravity.

But the real question is how long will this popular silence last When will the true costs?, both internally and economically, of a government leading the country into the unknown in the name of “security” and ?”historical rights” explode

?Is Israel heading toward the abyss