The Cost of Occupation: The Economic and Psychological Toll of the Israeli Aggression on Gaza
The ongoing Israeli war on Gaza has inflicted profound damage on the quotidian existence of those residing in the occupied territories of Palestine [Israel] while simultaneously imposing ad nauseam financial burdens upon the settlers of the Israeli regime.
The ongoing Israeli war on Gaza has inflicted profound damage on the quotidian existence of those residing in the occupied territories of Palestine [Israel] while simultaneously imposing ad nauseam financial burdens upon the settlers of the Israeli regime.
The dual specters of escalating economic strife and psychological malaise—quid pro quo consequences of the aggression----have inexorably strained the societal fabric and governance structures of the so-called Promised Land. This analysis bifurcates the costs of the war into two overarching categories: the economic turmoil and psychological afflictions borne by the Israelis:
I. The Economic Burdens: A Herculean Weight
The protracted conflict now surpassing 400 days has reverberated beyond the status quo ante of front-line engagement to permeate the daily lives of Israeli society at large. An overarching socio-economic crisis has gripped diverse strata of the population encompassing evacuees from the northern and southern regions, reservists, agriculturalists and urban families across the occupied territories.
One organization at the forefront of economic mitigation the Ogen Social Credit Organization has revealed a harrowing reality. Since the advent of hostilities Ogen has extended loans totaling 340 million shekels to households, enterprises and non-profit entities---a twofold increase from pre-war disbursements. This surge underscores a broader socio-economic collapse with even middle-income groups now grappling with subsistence-level challenges. Notably the sixth and seventh income deciles traditionally considered stable now find themselves enmeshed in struggles for financial solvency.
Compounding this is the government’s inertia in addressing monopolistic practices. A scathing report by the Inspector General elucidates how three dominant food suppliers monopolize 85% of sales in 20 key food categories yet regulatory measures remain conspicuously absent. This oligopolistic stranglehold has exacerbated inflationary pressures with consumer goods suppliers citing war-induced costs to justify price surges.
Simultaneously stagnation plagues the Committee to Combat the Cost of Living which last convened in mid-2023 leaving unchecked the relentless upward trajectory of prices. Housing rents have surged by an alarming 14.4% between 2021 and mid-2024 further propelled by rising interest rates that have rendered homeownership an unattainable possibility for many. Young couples particularly in urban centers increasingly resort to rentals only to face additional financial duress as rents escalate by 6% year-on-year.
The fiscal consequences extend beyond household budgets. The expansion of the military budget imposes quid pro quo demands on residents. For every 10 billion shekels allocated to defense households incur an additional annual burden of 4000 shekels. Furthermore; Mekorot Company's 3.4% water price hike and the Electricity Authority’s announced 3.8% tariff increase from January 2025 further accentuate the already precarious economic straits. These cumulative pressures epitomize a societal cul-de-sac where survival supplants prosperity.
II. The Psychological Repercussions: An Illegitimate Regime on the Brink?
The zeitgeist of insecurity wrought by incessant conflict has deeply scarred the collective psyche of Israeli society manifesting in escalating violence paranoia and gendered atrocities. Reports of domestic violence have skyrocketed by 65% with 1 in 10 residents subjected to spousal abuse within the past year--a shocking statistic indicative of societal fracturing.
The emotional toll is exacerbated among couples with military or security force affiliations during the Iron Sword War who endure elevated incidences of emotional financial and physical abuse. The proliferation of firearms has further entrenched this climate of fear. Applications for private gun licenses have surged by 300000 since the war's inception bringing the number of armed citizens to a staggering quarter-million.
A chilling report from the Yodaat Center for Women and Gender Studies reveals a grim reality: femicide has reached unprecedented levels with 31 women murdered in 2024 alone 38% of whom fell victim to gun violence. This represents the highest rate since records began underscoring the inextricable link between militarization and gendered violence.
The deleterious socio-economic and psychological tolls of the Israeli war on Gaza illuminate a stark realpolitik the Israeli regime’s pursuit of territorial aggrandizement exacts an unsustainable cost on its own populace. As the specter of war continues unabated the question remains: how long can this fragile edifice endure before it collapses under the weight of its contradictions?
