Weapons bought on military aid have to be made in America so more American jobs. In the 80s when the Lavi was plagued with cost overruns America offered Israel the F16 at an attractive price if it killed Lavi ( a potential competitor to Americas new F16 one day ) so they killed the competition. They offered to let Israel build F16 under licence originally but then said if you want to build under licence it can't be paid for with military aid you much buy a domestic one for that so one more order for Lockheed rather than keeping jobs at IAI. Israel has recently designed a new APC based on the hull if the Merkava 4 and so it can be paid for with military aid to save money Israel has set up a brand new plant in America do make it. Rafael & Rayathon are talking about a partnership to build Iron Dome in America so Israel can pay for it using military aid ( more jobs to Americans thanks to military aid) So lots of new jobs which wouldn't exist without the military aid program because it would be built in Israel. So military aid is a great way of killing competition from domestic markets. Another condition of military aid is at least about 90% of imported weapons ( no rules over domestically made ) must be made in America so can't take the military aid and then use your own money and buy European. Israel gets about $2.5 billion in military aid each year but it also spends more of its own money on American weapons each year than it gets in aid so the military aid is more like buy 1 get 1 free. The arms market is very expensive and the US government is not allowed to subsidise American companies so military aid they get a government subsidy allowing them to develop the next generation of weapons for the US military. Military aid is also used to buy political influence, if it wasn't for military aid America wouldn't have a fraction as much influence in Israel than it does today. About 30 other countries around the world also receive military aid. Support from Pakistan is essential in the Afghanistan war and America has that support becase it started offering military aid to Pakstan. So its something thatis used for a variety of purposes both financial and political its not just a matter of Israel gets free weapons.
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