
Ones and Tooze
The Economics of the Israel-Hamas War
Oct 13, 2023
Explore the economic implications of the Israel/Gaza war, including the sustainability of Israel's war footing and the challenges of urban counterinsurgency operations. Learn about the motivations behind the attack, Israel's strategy, and the desperate situation in Gaza. Discover the effects of the war on the international economy and the involvement of Saudi Arabia, Iran, and China. Also, get a sneak peek into the creators of the podcast and an upcoming episode on NATO's role in the war in Ukraine.
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Quick takeaways
- Israel's military operations in the Middle East are economically sustainable due to its superior resources and ability to avoid sanctions or limitations.
- Gaza's economy is hindered by deliberate policies that prioritize using its population as cheap labor for the Israeli economy, resulting in stagnation and dependence on international aid.
Deep dives
Economic Sustainability of Israel's War Effort
Israel's war effort in the Middle East is economically sustainable due to its massive military superiority over Hamas. Unlike Ukraine, Israel has the resources to maintain its military operations without facing sanctions or limitations. The cost of the conflict is estimated to be a fraction of Israel's GDP, especially if the operation is concluded within a few weeks. Israel's request for additional munitions from the United States, including artillery ammunition, reflects its goal of eradicating Hamas' military infrastructure in heavily populated areas. While this operation is challenging, Israel has the necessary resources to carry out its plans.
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