the was brought to you by visit castles. the challenge is here with the a feeling the heat of the world garza israel says the fire thing is costing millions of dollars every day and the devastation in the strip is unprecedented. so what's the real cost to both sides and what's the impact in the region and globally? this is inside story, the

hello and welcome to the program. i'm told me to try to place in workforce the closure of schools and businesses. and now spiraling military expenses. economists will and the cost is relevance for ongoing, so it will be unlike anything it has experienced in decades, as well as declaration of war more than 3 weeks ago, following a surprise attacked by him off his jolted global, financial and energy markets. now international financial institutions say the ongoing conflict will have bigger most of it risks for the global economy. we'll be discussing those issues without panel in just a few minutes. but this, this report by car leg day of today, israel is devastating attacks. keep coming on the siege by se in land, gaza faces a humanitarian and economic catastrophe. is ro

escalates its military offensive. the will run gaza is also heating its own economy . since from us launched this operation more than 3 weeks ago. israel stocks and currency for in many of its businesses and schools remain closed and international airlines have canceled flights. now its government has been forced to roll out to major war time stimulus program that's expected to raise public debt. already 3 credit rating agencies on israel is credit worthiness could be downgraded with the s and p global ratings. agency changing its outlook from stable to negative. that hasn't faced this man. israel finance minister, he says he doesn't yet have a full assessment of the cost of the war. after noticing the national budget was no longer relevant. the cost of war is expected to increase israel and the a $500000000000.00 economy is one of the most developed in the middle east. it's

expected to contract by 5 percent in the final quarter of the known as the nation. for startups, it's tech industry that accounts for 18 percent of its gdp and horrible exports is suffering production at a major offshore gas field that's reported to provide 70 percent of the country's energy needs has stopped. and its currency has lost value against the dollar. almost every day for the past 3 weeks, hitting an a t a low with the cost of low at around $246000000.00 per day. the in direct costs are expected to increase exponentially to a very difficult situation. it's of war. uh, the people are, uh, lots of people have been trusted in the rpm left the job market. there's the uncertainty. there are concerns uh that reduce people incentives to invest post outside money coming to his trial. and in turn of the us president joe biden

has pledged an unprecedented funding package of israel, but the fate of that request rested in the hands of congress. the world bank has also rooms that the global economy. is that a dangerous juncture and facing what it called? real risks? car leg inside story. the, let's bring it in now. yes. now and with to jerusalem is enough. klein, professor of political science about alon university. he is also the author of lives in co common arabs and jews in jerusalem. java and hebron in cold chesta is natasha instead. us policy and foreign policy specialist. she is the deputy dean and the department of government at the university of essex and in alexandria. virginia is use as many a head of the palestine israel program and senior fellow at the arab center will

welcome to all of you. thank you for joining us here. on inside story, not come if i could begin with you. first of all, we had that it's costing his route $246000000.00 us dollars a day. how big is the financial burden on israel as it carries out this war to the is riley. ok. war authoration cost a lot. i'm not next, but on security fine financial issues. but the, they imagine that the whole economy is stop, the 10s of thousands of productive people are quoted and the deployed the long, they boulders. so the whole economy is way in the whole have the, they is really the check. and i 0 thing is that the they already got

a dollar. so it's a huge, huge brandon is really the economy. what, what was may be a good not to be right, repair all the big, big, big, come back within a short period. natasha. we've heard economy as well, and it's saying that the cost as well will be unlike anything that is experienced in decades. do you think that the people, the end, the government is prepared to pay for this? well, in the long term you speaking of the government of israel, yes. i think based on what that in yahoo is that they are incredibly determined and that there's no turning bach. i from what i heard, it's been described as their own 911. if you were to compare,

do us spent 2 trillion in the war on terror in response to 911 a. so when there's been a trauma, often governments get behind sometimes incredibly expensive of war efforts to, to address the trauma that the public may feel. whether that is wrong or right, but that seems to be what has happened in the past. and of course, it has an incredibly and detrimental effects on civilian ductile and an escalation . but i can imagine the result is quite strong use if we're seeing this humanitarian toll, the people in gaza. i've had to have had to be over the last several weeks. but what about, i'm awesome, particularly when we does it get us money from it, and it's, and presumably those, and now you're getting reinforcements into the strip, obviously is not going to happen because of the blockades. and the closure of the board is completely what happens from a mazda is perspective about having to continually defend itself against, as well,

from here as well. i think the short answer is, we simply don't know. we don't know where this is going. we don't know how it's going to and we don't know what the guys are will look like is there if there is a cause at the end of the is really campaign there. if you listen to some of the statements from israeli officials talking about an i elation talking about making guys a place that is on livable it's, it's, it's hard to, to really imagine what, uh, what this place will look like when they are done. we've seen massive bombardment with a huge percentage of the structures in gaza being decimated. of course this leads to, to large scale the population as well. and there's no clear sense of when the people who lived in those places will be able to go back to their homes and if they

will be able to go back to their homes. so we're talking about of a completely different paradigm than the one that existed prior to october 7th in gaza. which itself was an, a humanitarian crisis to begin with and an extremely desperate situation for most of the people that live there. so it's, it's, it's simply not clear what we do know is that the costs will be extremely high, and those who are the most vulnerable in society will bear the brunt of it. mm hm. and how can we know that the us is backed israel wholeheartedly since the beginning of this war? and it gives roughly $3900000000.00 a year. and there is another financial aid packages being proposed by the buttons administration. how dependent is israel on the us? when it comes to this war, obviously, today we told him financially, so from

a financial point of view, a lot of financial point of view is right. it's about the financial point of view. but also in the security wise is right, is fully dependent on the 9th and how do like that space also politically and a and un institutions. um, so is right, kevin miller. so let's say this that's itself too far from the united states is riley must get no emergency aid to maintain that war. to continue the war have is ready, must continue getting us financial aid and police because have a backend. got to the uh, the day after, the question is when the day after starts, when we called the day after when, when the war and where we need to and it says fire

it really and with is really, is about to, i think, or cooper. i read all to pack gus a street. no, but in those these read is it says that there's rare, the administration has no same time for the day after the finish. and when the day after starts, i want to stick with the united states here for a little bit because i also want to go to all of this. now the bottom administration, i put together a $1500000000.00 national security package that includes military instrumented terry and assistance for conflicts and you kind as well as ro, uh, it's a said 14300000000 of that is for is ro. but now that there was a new speaker of the house, natasha that, uh, the republicans are now saying that they will put forward a bill that only focuses on i as royal. how complicated is this

a little guessing from a political point of view and getting money to as ro, i think in terms of getting money to israel, because the republicans are so adamant that they do want to support israel. and you see not just the republican of each but republican support for israel and most of the public, it is quite high a. and they're, they're going to ensure that to the age the, whatever military aid were giving. well, whatever you praying needs may be up in the air of a to ukraine, is probably not going to be up in there. they're going to try to push that through and you're seeing that there is some conversions here with by and who has been fairly pro, is really present and asking for 14000000000. and as you mentioned, and the pressure really will be more on what happens in the war and ukraine, as israel starts to need more precision guided munitions, artillery rounds and shells. we're going to come at the same time that ukraine might be needing more sophisticated weapons as well. and whether or not the u. s.

can produce both of these for both countries at the same time. it is um, no, but i think what we're seeing here with the, the political climate in us with the republicans and control the house and a more right. mean speaker, mike johnson. and then then even in the past, if that's possible, i guess rule would be the priority over 8 to ukraine. use a few, obviously in the united states. and we have seen a shows of solidarity rallies via for palestinians, despite the united states. supportive is ro, what is the sense that uh, in terms of long term and financially backing is riley here. and i think one of the important lessons from what we're seeing here in the united states, in terms of the dwindling support for financing the ukraine war is that americans have become quite tired of supporting endless

military engagements that they don't, don't quite understand why they're taking place or why they are so important and now you know, well over a year into the, you know, uh warren ukraine. more and more americans are saying, why are we doing this? why are we spending money on this? and i think, you know, while there is, of course, tremendous political support for is really here in the united states. this is a message that, you know, americans themselves are, are, are not going to want to engage their tax dollars in an open ended way, especially when there is no clear objective, no clear in game in sight when it comes to what is real is doing in in gaza and i would say that, you know, we spoke a little bit earlier about some of the costs here and israel's reliance on the united states. you know, the, the as early as for the war and 1967 against multiple states armies. and at that time, of course, they relied on on western arms,

but they didn't rely on direct american intervention. and today we see israel, you know, needing effectively to, if not more american aircraft carriers to stave off to non state actors. and so i think israel has become more rely, you know, more and more uh, you know, dependent on the united states today than it's, than it's ever been. and the costs of this are not just going to be economic. they're going to be political costs and policy costs as well that i think are going to re shaped away is rarely policy makers thought about much of their, of their, you know, security situation and their economic and political relations as well. natasha just briefly is obviously going to be an election in the united states next year. how big a part is financial package to israel going to play a part in that election? do you think? and i'm not sure it's going to play

a huge part because we see other issues becoming more important, whether it be the fight for democracy is justified in trunk contest or issues related to inflation or issues related to the border. americans have typically not prioritized a foreign policy issues in, in boating, as much as some of these other domestic issues. but we'll have to see how things unfold. i mean, at the moment though much of the international community is asking for a ceasefire and very concerned about the part of an instant cost indian civilians. the polling data that we're seeing in the us, it is showing the finding isn't stuck with much of the public. you have even 72 percent of democrats saying that they feel protecting israel is important aspect of american foreign policy and 80 percent of republicans. and only 18 percent of americans thought that is really response has been too harsh. so i think it's possible if the war goes on and becomes very expensive, it could be a drain,

there could be some fatigue. but as long as us troops aren't directly involved, i don't see it as being a huge issue in the 2024 election because it'll be overshadowed by other domestic issues, of course. okay, thank you. i want to get back to the point. yeah, of course use of or yeah, because i, i just, i, i do think there are complications here, especially when you look at sort of the demographic breakdowns and some of the, the following on this issue. there are some key demographics that the bite and campaign needs to have strong turn out in particularly younger americans who see the situation very differently than their, their older counterparts. and i think that this is going to be a real challenge for abiding re election campaign. and add to that of course, an error, but most of the community here in the united states, which is outraged over the, by the administration's approach to this so far. and when you consider how narrow

elections are here in the united states, and how key constituencies can make massive differences in very specific states. if, if it becomes a significant problem for a election campaign that relies on a large and diverse coalition, like the democrats tend to do and rely on significant use turn out as well. so while the overall public opinion polling is supportive, when one reads between the lines, there are a significant alarm bells political alarm bells that should be going off in a bite and campaign headquarters. you know, i want to get back to this sense inside it is right now, knocking. is there a discussion going on in israel at this point in time, consumed over how it will be able to pay for the school within the finance minister . come out and say that this is budget is no longer relevant. the s and p global

risings agency is downgraded the economic outlook from staples to negative. is there any discussion about this at all? the only limited discussion are there is a growing awareness of the compensation of the the, the, which amount of money needed to reconstruct they destroyed the keyboard save and the towns adjacent to god's history they, they are destroyed and add the tools that they have to ation. of those places, tens of thousands of people know totally but they are guys astray, but also getting more as long today's ready to leap in boulder. so the paper living a distance of up to 5 get home with us in the north, where ask by the government to evacuate and go to there's that the government

funds for them. the brown they of course so much of a bad defense. how long the war continues, where the war expense also to the door in the 2nd front openness between these right and the button on me add to that that this function in this way the government is really government performance are very, very poor. do you all to do from the cause i said races but, but the, the performance of very, very for the last few days, there's really copying that a point that they called in the door for rebuilding the g a bit. so they keep a team in phones and they're in south seas, right. so it will take much time. i have there is really is where the

why walking and the i, i don't know how it will end up. no. natasha, we hear it a little bit there about a potential a 2nd front opening. what would be the consequences of israel as a force to find his blog in the north as well as him off in the south as well. i think it would be catastrophic, and course it would be incredibly difficult for this release to have to do this. but if i just worry about the war, becoming even more internationalized sports that become more internationalize, of course, have much higher civilian ductile, and they go on for much longer. and this would be the last thing that we would need, of course at the moment when we're trying to get a cease fire to attend to the civilian casualties and mandatory and crisis facing gaza where they're struggling to get to water and electricity. uh and just basic needs met and if we then get into a 2nd front, this will put

a strain on any kind of effort to do this. but then we also see that when international actors get involved, the death toll just rises. as i mentioned. yeah. uses this obviously the, the occupied with bank, which is another issue here. obviously people and guys are, uh, living uh, a nightmare at this point in time. and this, the financial impact of this for is going to have inside as well. but what about for those palestinians trying to earn a living in the occupied with bank? how difficult is that now and will continue to be in the future to yes, well there's, there are parts of the west bank including in the area, see where some palestinians live, where the economic situation has for many years been more desperate than the economic situation in gaza, which is something we don't often hear about and can't really wrap our heads around . but of course, the military occupation and the westbank is debilitating for it's economic

prospects and really deprives billions of dollars worth of economic growth from the policy and economy in the west. bank, you know, since october 7th, things in the west bank of becoming become much, much worse. as really settlers who received additional arms from their supporters, india as rarely government. i have carried out numerous attacks against palestinians in the west bank. this is something that has been escalating in recent months and years prior to october 7th, and there is elevated violence against palestinians now in the west bank with over a 100000 units that have been killed by their soldiers or settlers since october 7th. this comes at a time where violence against palestinians in the west bank was at its highest point since international organizations like the united nations,

have been keeping track of the statistics there on these things. so the situation is extremely volatile. and you know, we talk about the possibility of a, of a northern front. there is, of course, the real possibility that there is massive the stabilization in the west bank as well. and we see a spread of this across the entirety of the map, not just, you know, uh, outside of, of israel and palestine, but inside of it as well. and natasha, i'm sure that you've seen some of the huge protests, the relative, so solo derossi's. so tell us the names that had been taking place right around the world. mean, for example, in london we saw hundreds and hundreds of thousands of people take to the streets. and one of the main things that the cooling for is that you kind of stopped funding, stop supporting israel at how much pressure is coming on these wisdom governments

to pull it supportive as well. and what's the consequences will that have, do you think? well, there's certainly protests going around around the world, not just one of those that are also in, in the us as well. so from people upset about government support of israel and wanting to take a tougher standard beast and trying to pressure israel to, to respond with more restraint in garza and to get some sort of ceasefire and to, to attend to, to the needs of innocent civilians. but whether or not that actually results in a policy change, you know, we've seen there been many protests over complex over time. if you look at the big picture of it all owing to, okay, to small changes, courses, counterexamples, we're going to actually work with the protest movement is able to influence government. but if you were to look at all of these different episodes of protests and, and applying pressure on governments,

governments ultimately end up doing what they feel they need to do of what is their best interest in these particular moments. mean awesome, we've got a minute or 2 left. i just want to ask to see you to, to sum up the sense of what it is like the end as well. does it feel like everyone that doesn't really care about how much this boy is going to cost that they are willing to pay whatever price it might be? as long as israel wins would have a winning looks like the way that women looks like. i'm getting great completely from the, from how about how much i i, i assumed that this is on the cheapest that uh yes, right. i can get 3 of those. how much do you think there is, but how much is in idea or, and the social welfare institution, or employee in the guys size at the ministration, the drugs,

they've got government agencies, it does uh and it would be impossible to, to, to destroy. it would be a big mistake if it's read the photos. most junior, are otc in the rock and roll thing. go great, great. think it kills in casa, where the big fire is red. it's counter productive is run, must think seriously how to cooperate with the guys all know how to destroy the strip. but to these really back to my mindset, the split is implementing good venture. yeah. uh, fairly in durant, frustrated results thinking politically on the day after. okay, thank you so much for your insights. uh, we really do appreciate that. all 3 of you coming on the program, not kim cline. natasha la instead uses. i mean, i thank you so much. well,

thank you to for watching it. you can see the program again any time by visiting our website. i'll just share a dot com. and so for the discussion, go to well facebook page. that's facebook dot com forward slash a j inside story. you can also join the conversation on x. l handle is at a j inside story. for me. tell mccrae and the whole team here, bye for now. the as to when it will cost. you need to stay focused. making a short pause. cooling your short round the go to toward chicago cubs to formula one full puddle. we focus on delivering crystal clear images to your home. and thanks to our lightning foss technology, you're not going to miss a single special moment. best tail set, space to deliver your vision. meets the world,

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prime minister benjamin netanyahu. i voted for you all these years, but this government failed hotels like this one incentive kind of. these have been preparing to host hundreds of israelis evacuated from towns and cities in that northern region. inside stops. all 3 books is full. the new arrivals, food supplies for sabbath mail, the will not be celebrated in peace. the, the, the hello i'm about to send and this is the news our life from joe hard coming off in the next 16 minutes. gaza under fire and fierce fighting continues deep into the nights between hom, us and allied fighters with this very force. it's a matter of life and desktop. un officials appeal for the humanitarian things. fire and gaza did emergency meeting of the security council. people are becoming

increasingly desperate.