A reader writes:
Supporting Israel's defense infrastructure has also has the bizarre unintended consequence of funding competition for our own defense industry. As you know, the DoD funds (via grants and contracted employment) a large number of small start-up companies in the US who focus primarily on security-related technology (i.e. encryption, computer networking, communications, etc.). If these companies are successful, they then transition their products/applications for sale to private enterprises and general consumers. These innovative small companies become the "job creators" the GOP likes to celebrate so much.
Of course, Israel also funds small Israeli companies in similar defense-related industries. But note they they can do this to a higher degree as they are being supported by an outside entity – the US government.
These small software and technology companies, if successful, then go on to compete in the open markets with similarly situated US companies. In the past, their products tended to be less expensive because they are more subsidized by their government and have greater access to a cheaper labor force. In a DoD-funded company I worked for, we competed with an Israeli company for a number of years. Since they could under-cut our prices, it was a struggle. Eventually they bought us out, took our patent portfolio, and eliminated the US operation.
Buyouts happen all over corporate America, of course. However, in this case, the US government (read: taxpayers) helped fund two companies which competed with one another. Investment sunk in to the American company was essentially lost when its technology was purchased by the Israeli company. Jobs created by US government funding, direct and indirect, will now go to Israel. Additionally, any further US government purchases of products/technology developed by my previous company will now go to the Israeli company.
I don't mind competing in a free market, but the playing field here seems a bit tilted. (And I can't express how frustrating it is to be labeled "anti-Israel" when I mention the above example. Substitute any other country in the above account and I would still think we are getting a raw deal.) As a side note, the principal owner of our company did very well as a result of selling the company. He is now a member of the 1%. The rest of us are among the glut of engineers and technical staff that are still looking for work.
The Dish 