toomuchtime_
Gold Member
- Dec 29, 2008
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We give money to Israel to spend here ? How much sense does that make?
It certainly makes more sense than giving them money to spend somewhere else. In fact, the net cost to the entire US economy, federal, state and local, is probably less than 20% of the face value of the credits when you consider how the money spent circulates throughout the economy and generates taxes at each level it passes through.
In fact, we never give them any money at all. We tell them how much they can spend and what they can buy. When Israel places an approved order, the federal government pays for it, and that money either goes back to the federal government or state and local governments in corporate or personal taxes or it is spent by the company or its employees and those expenditures generate more taxes or are spent and generate more taxes and so on. One side benefit of this kind of military aid is that it helps our defense industries maintain an excess capacity that the US would be able to draw on in an emergency.