The American public is furious and the real economy is bleeding: Where are trillions of dollars disappearing to while citizens groan under the economic burden? How does this frustration translate into hostility toward Israel, and why has the Iranian nuclear threat been pushed to the sidelines of Washington's priorities in a way that could leave the Israeli economy vulnerable and exposed without international protection? Dr. Eli Cook, a lecturer at the Land of Israel Museum and head of the US Studies Program at the University of Haifa, explains.
The world's largest economy currently appears to be driven by volatile political whims. On the one hand, Donald Trump is perceived as a capitalist businessman, while on the other hand, he forces himself as a partner and takes percentages from private companies that received support, sowing panic among CEOs. How can this economic zigzag be understood, and who ultimately pays the price?
The possibility that the US government would demand percentages or shares in private companies in exchange for granting subsidies, tax benefits, or investments is not unfounded. Trump's steps in this direction do raise concerns among many regarding the corruption of the system - concerns that cannot be dismissed out of hand - but it should be remembered that this is an industrial policy that has already been implemented in the past. The US has historical precedent for moves of this type. Furthermore, in an era characterized by vast economic disparities, the argument is gaining strength that it is only fitting that the broader American public should also enjoy the fruits of stock market gains.
Wall Street vs. the real economic reality
A similar approach to resolving the artificial intelligence issue is proposed by Bernie Sanders, who is considered the clear left-wing marker in economic discourse in the US. Sanders contends that since AI systems are based anyway on collective historical human knowledge, there is no justification for their profits to be concentrated among a select few. Therefore, he proposes that a significant chunk of shares in AI companies be transferred to the public. It should be emphasized that the intention is for public, not government, ownership, in order to prevent politicians from controlling or exploiting these resources. Although these moves carry clear complexities and draw criticism from neoliberal elements claiming harm to free market principles, in the broader view, it is doubtful whether this is the most problematic aspect of Trump's policy.
Trump treats stock market gains as the sole measure of his success, but the reality on the ground is much more complex. A median home costs $434,100. To finance that with an interest rate of around 6.5%, one needs to earn $110,000 to $120,000 a year, far above the median income (estimated at around $87,500). Does this obsessive focus on Wall Street prove that the administration is completely detached from the real economy?
Ninety percent of stock market wealth is concentrated in the hands of the top decile. The general public holds few investments, and in negligible amounts, so in practice it remains outside the Wall Street celebration. The president's detachment from this reality explains why his approval ratings have dropped below those of George W. Bush. While citizens are groaning, his preoccupation with showcase projects like renovating the White House and building a ballroom illustrates the gap from the ground far more than any dry statistic. This frustration is well reflected in the polls: When the average American citizen is asked about their economic future, confidence indices are at a historic low reminiscent of the days following the 2008 crisis. Food prices spiked and have remained high, and this is the true engine behind the public rage.
Soaring deficits and unchecked corporate spending
From January 2025 to August 2026, the national debt surged from $36.2 trillion to $39.8 trillion, but conversely, the real economy is registering growth of just 1.5%. This gap raises an obvious question: Where are these massive budgets flowing, and does the taxpaying public really enjoy this investment, or is it left out of the equation?
The problem with the deficit is not just the debt itself, but what the money is wasted on. Is it being directed toward investments in education, public housing, or lowering the cost of living for citizens? Absolutely not. The money is being sucked into two main pits: The first is the healthcare system. The US never bothered to establish a normal system like other Western countries, creating an absurd situation where funding is often public, but control lies in the hands of predatory private corporations. Massive capital moves directly from the taxpayer's pocket to corporate coffers and the pockets of doctors, which explains the crazy percentage of American doctors in the top percentile. The second pit is defense, into which roughly $1.5 trillion is poured. So when people ask where the public money vanished, that is where it goes.
If you connect the dots, with a citizen suffocating from the cost of living on one hand, and the understanding that state coffers are being sucked upward to corporations, defense, and a small handful of elites on the other, you get a powder keg of public rage. When frustrated American citizens look for someone to blame for this economic robbery, where is that anger directed?
Economic frustration translates to hostility toward Israel
Of course toward the corporations, but not only them. This frustration often connects to the Israeli issue. There are many Americans who are convinced that their tax dollars fund universal health insurance in Israel. It is complete nonsense, but here you see how the two worlds collide: The economic frustration of the ordinary American translates into anger over aid to Israel, creating a direct pipeline to antisemitic tropes. When economic gaps widen and people are suffocated, they look for a scapegoat, and instead of blaming the corporations milking them, there are those who blame Jews. For the frustrated crowd, the Jeffrey Epstein affair encapsulates the entire story - for them, it is proof confirming conspiracy theories about who really pulls the strings and controls them.
The Islamic specter: In the past, the alliance between Israel and the US relied heavily on a shared threat of terrorism and radical Islam. Does the American public still share this existential fear of the Iranian axis with us, or has the gap between us widened?
The gap is huge, and this threat has almost vanished from the American radar. If you look at recent polls checking what the American citizen truly fears, you will see that only about 2% place Islamic terrorism at the top of their priorities. America has changed; today there are strong Muslim communities and Muslim representatives in key positions in local and national politics.
The shift in US foreign policy and Israeli security
When we talk to them about a danger from Iran, it simply does not scare them. The average American citizen asks themselves: "What have the Iranians actually done to us directly in recent years?" The classic Israeli argument that "if we don't stop them here, terror will reach your homes" no longer resonates or works on them. America's focus has shifted elsewhere entirely, both in domestic politics and foreign policy. The shared fear that once connected us has simply evaporated.
You describe an American street that has developed actual hatred toward us. But the instinctive response of many Israelis today is simply to shrug and say, "It doesn't matter what we do, it's just blind antisemitism, they will hate us anyway, so we might as well do what's good for us." Is this disconnect and hostility really an unavoidable fate of antisemitism, or do we bear direct responsibility for this situation?
This is a direct result of Israeli policy. It started from the decision to identify Israel completely with Republicans and rely on the support of Evangelicals. These are conscious decisions that we made, and because of them we lost the support of large segments of the liberal camp. The message coming today from broad parts of Israeli society is that "it doesn't matter what we do, they will hate us anyway." This is simply a comfortable stance meant to shirk responsibility, and it is nonsense. I am not talking about the far Left or the far Right in the US; mainstream America hates what it sees in Gaza, and hates the perception that Israel is warmongering. They even blame Israel for rising gas prices, because in their view Netanyahu is dragging Trump into escalation. This approach of "I will do whatever I want because they hate me anyway" is dangerous and destructive, because the reality is not like that at all.
Let's move to the bottom line for us. The isolationist approach of "America First," in which the administration sheds traditional global commitments, is reaching us too. Everyone talks about the fear of cuts to defense aid, and it is clear that would be a harsh blow to the budget. But beyond the billions that could be cut directly, does the economic danger to Israel stop there? What is the indirect economic price we will pay once the US takes a step back and stops serving as our international bulletproof vest?
American military aid is about to shrink dramatically. The billions we were used to receiving will be cut, and this will create a massive budget hole. But the damage does not stop there. The real long-term danger is that if the US administration signals that America is no longer interested in the global order and largely removes the defense umbrella over Israel, the economic consequences could be dramatic. For example, we currently have exceptional, unique free trade agreements with Europe that no country outside the bloc possesses, and they rely significantly on American backing. Once the US steps back, the Israeli economy is left completely exposed and vulnerable.