web analytics
April 24, 2014 / 24 Nisan, 5774
At a Glance
InDepth
Sponsored Post
Spa 1.2 Combining Modern Living in Traditional Jerusalem

A unique and prestigious residential project in now being built in Mekor Haim Street in Jerusalem.



Israel Facing Weak US Economy, Foreign Policy, Following Elections

Generally, though no one in the United States thinks in these terms, the battle in America is between the ideas governing Israel in two eras of its history. Obama’s statism reflects the early policies of Israel.
NYSE Broke

Photo Credit: Yori Yanover

Share Button
Originally published at Rubin Reports.
With President Barack Obama reelected there is every reason to believe that he will continue the tax, regulatory, and economic policies of his first term. That means the U.S. economy is unlikely to improve quickly, steadily, or even at all during the next four years. The problem is not just Obama’s own strategy on these issues but also the lack of business confidence in his plans.
Those doubts, along with even higher taxes, a complex and costly new health care system, and uncertainty about what new costs Obama is going to impose will keep investors, large corporations, and small businesses from investing money. Thus, unemployment will remain high and recovery slow or even non-existent.
And that will have a big effect on Israeli thinking. If Israeli policymakers–and businesspeople–view certain policies as failing in the United States they are unlikely to adapt those ideas to Israel, even if some of seem ideologically attractive to the moderate left here.
The strategy of higher taxes, high regulation, increasing government intervention, and bigger government are already unattractive in Israel and will be even more so. The Labor Party wants more effort on improving social welfare and lowering the country’s high prices yet knows the Obama-European approach has been disastrous. .
Poor performance by the U.S. economy will also have a negative effect on Israel’s own growth and trade, reducing the prospects for exports to America and by having a depressing effect on the global economy.
In contrast, a victory for Romney would have encouraged businesspeople in the United States to believe they woulf face policies more favorable to their needs. With the possible repeal of Obama’s controversial health care plan, quite costly to employers, and the likelihood of lower taxes and reduced—or at least stable—regulation, there would have been an incentive for them to invest and expand their businesses.
A booming U.S. economy would benefit Israel’s economy both directly and indirectly through its impact on the international economic situation as well. Romney’s expertise on turning around failing businesses would have provided the proper management. But that’s not going to happen.
While the similarities should not be exaggerated one could suggest that a Romney presidency would have more closely paralleled Israel’s economic strategy. After all, Israel has succeeded in recent years with an approach favoring privatization, keeping unemployment low, and avoiding large-scale governmental borrowing or debt. This policy, of course, also has costs, as the social protests of last year showed.
Generally, though no one in the United States thinks in these terms, the battle in America is between the ideas governing Israel in two eras of its history. Obama’s statism reflects the early policies of Israel. The difference, of course, is that those positions were necessary for a newly born country that had no alternatives but not for the United States in the year 2013. Romney’s approach represented more of the strategy of Israeli governments of all three ruling parties during the last two decades.
At any rate, Israel is going to have to deal with a weak American economy, as well as a weak American foreign policy, for the next four years.
Originally published at Rubin Reports.
Share Button

About the Author: Professor Barry Rubin is director of the Global Research in International Affairs (GLORIA) Center and editor of the Middle East Review of International Affairs (MERIA) Journal. See the GLORIA/MERIA site at www.gloria-center.org.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

Leave a comment (Select your commenting platform)

4 Responses to “Israel Facing Weak US Economy, Foreign Policy, Following Elections”

  1. Charlie Hall says:

    "The strategy of higher taxes, high regulation, increasing government intervention, and bigger government are already unattractive in Israel and will be even more so."

    Wrong. The *Likud* policies in Israel include much higher taxes, greater government intervention in the economy, more government regulation especially in the financial sector, and a much larger government including a more comprehensive universal heatlh insurance system than the US will have even after Obamacare fully kicks in. It is in fact these polices that have CAUSED Israel's economic success.

  2. this is the slow bleed of the American empire.

Comments are closed.

SocialTwist Tell-a-Friend

Loading Facebook Comments ...
Loading Disqus Comments ...
Current Top Story
US State Department spokesperson Jen Psaki.
America Joins Israel in Canceling Talks with PA
Latest Indepth Stories
Palestinian boys stand behind mock jail bars during a rally calling for the release of Palestinian prisoners from Israeli jails (but not from Palestinian Arab jails), in Rafah in the southern Gaza Strip on April 20, 2014.

The Palestinian Authority has jailed more than 350 Arabs for “security” reasons in just 2014.

Rabbi Auerbach seen at a ceremony for the students who have finished the reading of the Babylonian talmud, at Ammunition Hill in Jerusalem on July 31, 2012.

Since Torah is the great equalizer, the great reconciler of divergent but valid opinions, this is also the place where common ground is reached.

Dueling Shofarim

Some American Jews feel their community has been hijacked from within by groups waging war against Israel seemingly in the name of the Jewish people.

Al-Aksa Mosque was claimed to be the site from which Mohammed ascended to Heaven, but it was built nearly 50 years after Mohammed died.

Jerusalem only seems important in the Islamic world when non-Muslims control or capture the city.

Jordan’s king is adding fuel to the fire on the Temple Mount, blaming Israel for violence by Muslim Arab rioters.

At Brandeis, much of what counts as Western civilization got cold feet and won’t stand with Hirsi Ali.

But the lesson from this meditation is that hidden behind the anti-semitic act is the greatest light.

As support of their messianic dream, Halevi and Antepli approve dishonoring Hirsi Ali as a ‘renegade.’

If itis a mitzva to eat matza all Pesach, then why is there no berakha attached to it?

When we are united with unconditional love, no stone will be raised against us by our enemies.

The reporter simply reports the news, but it is greater to be inspired to better the situation.

The Big Bang theory marked the scientific community’s first sense of the universe having a beginning.

Freeing convicted murderers returns the status of Jewish existence to something less than sanctified.

“The bigger they are the harder they fall” describes what God had in mind for Olmert.

We, soldiers of the IDF, who stand guard over the people and the land, fulfill the hopes of the millions of Jewish people across the generations who sought freedom.

How much is the human mind able to grasp of the Divine?

More Articles from Barry Rubin
Youssef Ziedan

The interviewer responds, “There was also Balfour.”

peace_clowns

If the Obama/Kerry peace deal does go through, what would the risks be?

Let me make it plain. There will be mass murder, even genocide in Syria.

A large number of pro-Obama and radical or even anti-Israel cadre are Jews.

Does anyone think the Palestinian Authority will resist daily attacks from Hamas and Fatah radicals?

Secret Service security arrangements were overruled.

The Obama Administration plan is very simple, assuming that everything goes smoothly–which of course it will not.

The less you know about Islam, the better. Ignorance is strength.

    Latest Poll

    Now that Kerry's "Peace Talks" are apparently over, are you...?







    View Results

    Loading ... Loading ...

Printed from: http://www.jewishpress.com/indepth/analysis/rubin-reports/israel-facing-weak-us-economy-foreign-policy-following-elections/2012/11/12/

Scan this QR code to visit this page online: