War spending wears out Israel economy

PressTV -Mon Aug 8, 2011 6:22PM GMT

An analyst believes that the financial crisis gripping Israel is the result of Tel Aviv’s excessive spending on the military and settlement expansion.

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“The problem with the Israeli society is that the government spends a lot of its budget, a lot of its money, on military spending”, Mukhaimer Abu Seada, professor of political science at Al-Azhar University in Gaza, told Press TV on Sunday.

“In addition to that, the government poured millions of US dollars in expanding Israeli settlements in the West Bank and East Jerusalem instead of spending that money on the Israeli population and the Israeli citizens,” he added.

Abu Seada also said that the Israeli Prime Minister Benjamin Netanyahu’s weak economic policies have created a situation in which a number of companies are controlling the Israeli economy.

He also noted that Netanyahu’s economic policies have widened the gap between the rich and poor.

Hundreds of Israelis have been protesting against the parliament’s approval of a new housing bill, saying the new law will not resolve the housing crisis in Israel.

The protesters say the new law will only favor the rich by encouraging big developers to build luxury projects rather than affordable housing.

They have also called for the resignation of Prime Minister Benjamin Netanyahu.

Israeli protesters are calling for measures to curb the high cost of living, which has jumped by 50 percent in recent years.

MSK/HGH/MMN

 

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