Economic Strain in US Fuels Growing Hostility Toward Israel Amid Shifting Priorities
Dr. Eli Cook, a lecturer at the University of Haifa and expert on US affairs, outlines the deep economic frustrations in the United States under President Donald Trump’s administration and their repercussions for Israel. Despite stock market gains, the American public faces rising living costs, stagnant real economic growth, and soaring national debt, which increased from $36.2 trillion in January 2025 to $39.8 trillion by August 2026. This economic disconnect is fueling public anger, which is increasingly directed toward corporations and, problematically, toward Israel due to misconceptions about US tax money funding Israeli social programs.
Trump’s economic policies, including demands for equity stakes in private companies receiving government aid, have unsettled business leaders and sparked fears of systemic corruption. Meanwhile, the wealth generated by Wall Street remains concentrated among the top 10%, leaving most Americans excluded from financial gains. This disparity, coupled with rising food prices and healthcare costs, has led to historically low economic confidence among Americans, reminiscent of the post-2008 crisis period.
The traditional US-Israel alliance, once strongly united by shared concerns over Islamic terrorism and Iran’s nuclear threat, is weakening. Surveys show only 2% of Americans now prioritize Islamic terrorism, reflecting a shift in domestic and foreign policy focus. Additionally, Israel’s political alignment with the Republican Party and evangelical supporters has alienated many in the broader American liberal mainstream, exacerbating anti-Israel sentiment.
Looking ahead, Dr. Cook warns that the anticipated cuts in US military aid to Israel will not only strain Israel’s defense budget but also jeopardize its unique trade agreements and economic security. As the US retreats from its global commitments, Israel faces increased vulnerability both economically and strategically, highlighting the urgent need for Israel to reassess its diplomatic and economic strategies in response to changing American priorities.
