Vice President of the USA JD Vance said today: “My message to people in Bibi’s government who are attacking Trump: Do not attack the only leader in the world who supports you. Your country was built with our money.”
Vance has already embarrassed himself by claiming that the Second World War was ended through negotiations, which is simply and plainly historically false. Germany and Japan surrendered unconditionally after their German and Japanese military forces had been completely destroyed. And once again, Vance is factually wrong, as will be explained below, with his latest claim that Israel was built with US taxmoney.
While the United States has provided substantial aid to Israel—making it the largest cumulative recipient of U.S. foreign assistance since World War II—the idea that Israel “was built with” U.S. taxpayer money does not hold up under historical or economic scrutiny.
Total U.S. Aid to Israel
Israel has received roughly $300 billion (inflation-adjusted) in U.S. economic and military assistance since its founding in 1948 (or from the early 1950s in many datasets). Non-inflation-adjusted figures are lower, around $175 billion through recent years.
- Breakdown: About 70-75% has been military aid; the rest economic. Economic aid was more prominent early on but was largely phased out by 2007–2008 as Israel’s economy matured. Today, nearly all aid (~$3.8 billion annually under a 2016–2028 Memorandum of Understanding, plus supplements) is military (Foreign Military Financing/FMF), with ~74% required to be spent on U.S.-made equipment.
- Timing matters greatly: Aid was modest before the late 1960s/early 1970s. From 1949–1973, total U.S. aid was only about $3.1 billion (much of it loans). Major increases came after the 1967 and especially 1973 Yom Kippur wars.
Current scale relative to Israel’s economy:
- Israel’s GDP is approximately $500–540 billion (recent years). Annual U.S. aid of ~$3.8 billion represents well under 1% of GDP.
- It covers roughly 14–20% of Israel’s defense budget (higher in wartime years with supplements).
This is meaningful for security but not foundational to the economy or “building” the country.
How Israel Was Actually Built
Israel in 1948 was poor, small, and facing existential threats and mass immigration. Its early development relied on multiple sources:
- Internal efforts and high growth: Real GNP grew over 11% annually on average from 1950–1965 (per capita >6%). Israel achieved rapid industrialization, agriculture (e.g., drip irrigation turning desert into productive land), infrastructure, and later a world-leading high-tech sector (“Startup Nation”). Growth was driven by Israeli ingenuity, labor, institutions, and policy.
- German reparations (1950s–1960s): The 1952 Luxembourg Agreement delivered ~3 billion German marks (~$714–845 million at the time) in goods and services over ~14 years, plus funds to Jewish organizations. These were invested in power plants, infrastructure, and industry. The Bank of Israel estimated they contributed ~15% to GNP growth and created ~45,000 jobs during that period—significant for a tiny early economy, though not the sole factor.
- Private Jewish diaspora support: Billions via Israel Bonds and donations (especially from American Jews). These were private, not U.S. government funds.
- U.S. government role: Early aid was relatively small and often loans or commodities. It helped, particularly in stabilization (e.g., 1980s hyperinflation support), but was not the primary driver.
U.S. military aid later became strategically important for maintaining Israel’s qualitative military edge amid regional threats, allowing higher defense spending without crippling the civilian economy. Much of this aid recirculates to the U.S. economy via arms purchases, supporting American jobs and industry.
Israel’s GDP also grew dramatically from a tiny base (e.g., ~$3 billion in 1960 to tens of billions by the 1980s and hundreds today), driven largely by its own productivity boom, especially from the 1990s high-tech surge onward.
Bottom Line
- Economically false as stated: Israel was not “built with” U.S. money. Core foundations (state institutions, early infrastructure, agriculture, industry, and the high-tech miracle) were Israeli-driven, supplemented by German reparations, diaspora philanthropy, and internal growth. U.S. aid was one important factor among several, especially for security post-1970s.
- The aid represents a strategic alliance that benefits both countries (U.S. gets intelligence sharing, tech cooperation, a stable Middle East partner, and domestic economic returns from arms sales). It is not unilateral charity or the reason Israel exists or prospers.
- Claims like this often serve political rhetoric but ignore the timeline, scale, and multifaceted reality of Israel’s development.
Israel today is a high-income, innovative OECD-comparable economy that has long since outgrown reliance on U.S. economic aid. Military aid remains a key pillar of the security partnership, but it does not equate to the country having been “built” by American money.
Haym Salomon – The Jewish Financier of the American Revolution
Haym Salomon (also spelled Hyam or Haym Solomon; born April 7, 1740, in Leszno/Lissa in the Polish-Lithuanian Commonwealth, today Poland; died January 6, 1785, in Philadelphia) stands as one of the most significant individual financiers of the American Revolution.
As a Polish-Jewish immigrant, successful merchant, and broker in Philadelphia, he supported the Continental Congress and General George Washington during a time of acute financial crisis. Through his personal financial commitment and tireless efforts, he made a decisive contribution to the very foundation/survival of the United States.
Historical Background: The Financial Crisis of the Revolution
The American Revolution (1775–1783) faced not only military challenges but also severe financial difficulties. The Continental Congress lacked effective taxing authority and depended on voluntary contributions from the states, which were often insufficient or unpaid. The paper currency known as “Continentals” depreciated rapidly due to massive inflation, eroding trust in the money supply.
Financing the war relied on foreign loans—primarily from France, but also the Netherlands and Spain—along with domestic bonds and improvised measures. In 1781, Robert Morris was appointed Superintendent of Finance and worked to stabilize the situation through the creation of the Bank of North America and other reforms.
In this precarious environment, mobilizing capital through trusted brokers and merchants in commercial centers like Philadelphia became essential. Without adequate funding, the army risked collapse—troops could not be paid, supplied, or moved effectively. The successful siege of Yorktown in 1781, which proved decisive in the war, depended heavily on the timely provision of funds.
Salomon’s Role and Contributions to the Financing
Haym Salomon, born into a Sephardic Jewish family (descendants of Spanish and Portuguese Jews who had fled to Poland after the 1492 expulsion), acquired financial expertise in Western Europe and mastered several languages. He immigrated to New York in 1775, where he worked as a broker for overseas trade.
He joined the Sons of Liberty and was arrested by the British in 1776 on suspicion of espionage. During his imprisonment, he served as an interpreter for Hessian troops and helped prisoners escape or desert. After his release or escape in 1778, he moved to Philadelphia, where he quickly established himself as a successful broker.
From 1781 onward, Salomon worked closely with Robert Morris. He served as an authorized broker for the Office of Finance and handled bills of exchange that converted foreign loans into usable cash (specie or acceptable funds). He sold government bills to American merchants and helped stabilize the market for French and Dutch financial instruments. Morris’s diaries record numerous transactions with Salomon, often noting the need to call on him when funds were short.
A standout example occurred in August 1781: George Washington urgently needed approximately $20,000 (in contemporary currency) to march his troops from New York to Yorktown. When Morris reported that no money was available, Washington reportedly replied, “Send for Haym Salomon.” Salomon quickly raised the sum by selling bills of exchange. This financing enabled the decisive victory at Yorktown.
In addition, Salomon extended personal advances and loans to prominent figures, including James Madison (the future president), often at favorable or interest-free terms. He also supported other members of Congress and officers. As agent to the French consul and paymaster for French forces in America, he expanded his networks and influence.
Without Haym Salomon, no USA
Some accounts estimate that he contributed around $650,000 from his personal fortune. These figures are supported by congressional records, historical accounts, and primary sources documenting his activities.
Records indicate that between 1781 and 1784, through fundraising and personal advances, Salomon provided over $650,000 in financing for Washington’s war effort and the Continental cause which was equivalent to roughly $15 million or more in today’s dollars, according to conservative calculation method. Based on this conservantive calculation method The United States spent roughly 37 million dollars on the war at the national level. So, the amount from Haym Salomon with about $15 million was decisive and substantial. Without his efforts, the USA would likely never had seen daylight and survived.
Salomon risked and ultimately lost much of his own wealth in support of the Revolution. He used his personal credit—often stronger than that of the young government—to place risky securities and advance funds when needed. He died in 1785 at age 44, leaving behind debts that exceeded his assets.
He held government securities and promissory notes that had greatly depreciated (sometimes worth only about 10 cents on the dollar). His family was left in financial distress; later claims for repayment by his son were partially recognized but never fully honored.
Salomon’s Motives
Salomon’s commitment went far beyond business interests. As a Jew who had experienced persecution and uncertainty in Europe (including amid the partitions of Poland), he strongly identified with the American ideals of liberty and religious tolerance. He was active in Philadelphia’s Jewish community, co-founding the Mikveh Israel synagogue (to which he made the largest individual donation in 1782) and advocating for the removal of religious test oaths in Pennsylvania in 1783.
His joining of the Sons of Liberty and assistance to Hessian deserters reflected a clear anti-British, pro-independence stance. Patriotism and the belief that a free America would offer better opportunities—including for Jews—played a central role. While he leveraged his business networks and linguistic skills, the significant risks he took (including the loss of property to the British and financial overextension) demonstrate that his actions were driven by deeper convictions of liberty and justice.
Conclusion
Haym Salomon was not the sole savior of the Revolution—military leadership under Washington, the French alliance, British missteps, and the efforts of countless others were equally vital. However, his contributions in the critical later phase (1781–1783) were essential for sustaining financing and enabling the victory at Yorktown as well as the stabilization of the young nation. Through his personal sacrifices and professional expertise, he helped secure the financial foundation for American independence.
Scholarly works and primary sources, including Robert Morris’s diaries, congressional records, and historical analyses, affirm his pivotal role as a key financier who advanced substantial personal resources and mobilized critical funds. His story symbolizes the vital contributions of immigrants and minorities to the founding of the United States. Monuments (such as the one in Chicago depicting him alongside Washington and Morris, and the statue in Los Angeles) and his memorial at the Mikveh Israel Cemetery in Philadelphia honor his legacy as a dedicated patriot and financial hero of the Revolution.
Tools used for research, translation, proof reading, verification of codes/equations, pic generation etc.: LLMs / SE / BusinessSoftware / Parsers / DB/ Websites etc. All articles: Creative Commons BY-NC-ND 4.0 (Attribution-NonCommercial-NoDerivs) hold by Dr. Naftali Hirschl. Pic by AI (illustrative).