Defense Economics Issues in Israel

Abstract

In the 1950s and 1960s, prior to the 1967 War, open arguments about national security were virtually unknown in Israel. National security enjoyed a broad consensus, and besides, there was concern lest public argument on defense-related subjects be construed as a sign of national weakness. As for defense economics issues, there was another reason too: the economy grew very rapidly, and growth in defense expenditures was not exceptional compared to other areas. Defense expenditures were not thought to harm economic stability or to hinder growth. After the 1967 War, professional economic interest in defense arose as defense expenditures were growing rapidly, as was their relative weight in the economy, and national consensus on defense issues began to fade.