The Cost of Vigilance in Israel: Linking the Economic and Social Costs of Defense

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Abstract
The purpose of this paper is to analyze the extent of the gun-butter tradeoff in Israel and to assess the level of public support for such a tradeoff. It was found that the extent of the gun-butter tradeoff is very considerable, both in terms of direct cuts in social and welfare spending and the less direct losses in opportunity costs. Because of the 'self-defense' nature of the Arab-Israeli conflict, it has often been argued that Israeli public support for such a tradeoff is continuously high. However, an analysis of the demands articulated by Israeli protest movements reveals that there are important limitations on the level and direction of popular support for the tradeoff. First, social protest groups have increasingly criticized the tradeoff and demanded a reallocation of resources to reflect more closely the social rather than the military need of the country. Second, the Peace Movement groups have undermined the 'package deal' perception of the defense budget, introducing the notion that part of the defense spending, especially on the West Bank, is somewhat of a 'colonial' burden rather than a legimate 'self-defense' expenditure.

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