The End of Zionism: Economic Ruin, Military Defeat, Mass Exodus Is Israel Collapsing?
August 27, 2024
Hunter Duke
Israel faces an unprecedented crisis as it grapples with a mass exodus, military failures, and growing international isolation. As the Zionist project teeters on the brink of collapse, the nation's future as a state is increasingly in doubt.
Gaza-Israel War
The Exodus: A Nation in Retreat
Israel is currently experiencing one of the most significant waves of emigration in its history, with nearly 470,000 Israelis having left the country since the onset of the war in Gaza on October 7, 2023. This mass departure is a direct response to the nation's struggles in achieving its military objectives in Gaza, a faltering economy, and increasing global isolation. The exodus, driven by the escalating conflict with Hezbollah and severe internal political instability, marks a critical juncture in what some view as the decline of the Zionist project.
The trend of migration began before the recent escalation, with a July 2023 survey revealing that 28% of Israelis were considering leaving the country due to fears of civil war and violence. This trend intensified dramatically after October 7, leading to a 285% increase in emigration that month compared to the same period in 2022. However, in the months following, this surge moderated somewhat, with about 30,000 Israelis emigrating between November 2023 and March 2024—a 14% decrease from the same period the previous year.
At the same time, the number of Israelis returning from abroad declined by 21%, indicating a broader shift in the population. The emigration rate had already been on the rise before the war, with a 51% increase in the months of June to September 2023, driven by widespread protests against the government's judicial overhaul plans.
The Military Crisis: A Failing Zionist State
Israel's military crisis has deepened in recent months, exacerbated by its inability to achieve decisive victories in Gaza. Despite its aggressive operations, Israel has failed to dismantle Hamas or other Palestinian resistance groups, leaving both hostages and its broader strategic goals in jeopardy. This failure has not only emboldened these groups but has also fostered unprecedented unity across the Arab world against Israel.
A notable development reflecting this shift is the Arab League's decision to remove Hezbollah from its list of terrorist organizations. This move underscores Israel's waning influence and the crumbling of its long-standing divide-and-rule approach in the Middle East. Hezbollah, once widely condemned, is now gaining broader acceptance in the region, signaling a significant geopolitical shift.
Israel's military struggles are further compounded by internal pressures. With wars on multiple fronts, including increasing hostilities with Hezbollah in Lebanon and tensions with Iran, Israel's military is stretched thin. In response to this crisis, the Israeli Supreme Court recently mandated that ultra-Orthodox Jews, who were previously exempt, must now be subject to military conscription. This ruling highlights the severity of Israel's manpower shortages and the government's desperation to bolster its forces.
The situation bears a striking resemblance to the final days of Nazi Germany, where the regime resorted to conscripting the very young and old to sustain its military efforts. Israel's current reliance on broader conscription, including the ultra-Orthodox community, reflects the dire state of its military capabilities and the growing internal divisions within the country.
Moreover, international criticism of Israel's actions has intensified. The United Nations and various human rights organizations have condemned the humanitarian impact of Israel's military operations in Gaza, further isolating the country on the global stage. This isolation is contributing to the weakening of Israel's strategic position in the region, as its traditional allies become more vocal in their opposition.
Economic Downfall: A Nation in Decline
Israel's economy is teetering on the edge of disaster. The final quarter of 2023 saw a devastating contraction, with GDP plummeting by 19.4%—the first decline in nearly two years. This sharp downturn was largely driven by a 26.9% collapse in private consumption, as the nation reeled from the aftermath of the October 7 attacks. The combination of reduced household spending, halted residential construction, and a significant decline in Palestinian labor due to military call-ups contributed to this economic freefall.
The housing market, once a cornerstone of Israel’s economic strength, has all but collapsed, with fixed business investments plunging by a staggering 67.8%. The shekel, which initially nosedived after the attacks, has made a partial recovery thanks to central bank interventions. However, this recovery is fragile, and the overall economic indicators paint a grim picture.
Despite a fleeting recovery in the Tel Aviv Stock Exchange, where the Tel Aviv 125 Index managed to regain some ground, the underlying issues remain. The conflict is expected to cost Israel 255 billion shekels ($70.3 billion) by the end of 2025, a staggering 13% of its GDP. Moody’s recent downgrade of Israel's credit rating, the first in its history, reflects growing concerns over the country’s economic stability, exacerbated by the war and escalating political risks.
Israel’s once-thriving tech sector, a vital part of its economy, faces severe challenges as well. The ongoing conflict has disrupted the workforce, with about 15% of tech employees enlisted for military service. Although the sector has shown resilience, the war has stifled fundraising efforts, further weakening the economic outlook. The broader economic impact is clear: exports have declined by 18.3%, and the economic toll of the conflict shows no sign of abating.
The Decline of the Israel Lobby: Losing Influence and Allies
The Israel lobby, particularly AIPAC, once wielded significant influence over U.S. and global politics. However, its power is waning as public opinion shifts and the lobby's tactics are increasingly seen as counterproductive. The lobby's attempt to control the narrative and intimidate critics has failed, particularly in the face of the live-streamed genocide in Gaza.
The lobby's alignment with the Republican Party has further isolated it from younger, more progressive Americans, including a growing number of Jewish Americans who no longer see Israel as a moral or strategic asset. This shift in public opinion, coupled with the loss of bipartisan support, marks the beginning of the end for the Israel lobby's dominance in U.S. politics.
As Israel becomes more isolated and its actions more brutal, the lobby will find it increasingly difficult to garner support from even its most loyal allies. This erosion of support is not just a problem for the lobby but a sign of the broader decline of Zionism itself.
The diminishing influence of AIPAC has become even more apparent as progressive organizations in the United States have begun to openly challenge its dominance. In March 2024, more than 20 advocacy groups launched the “Reject AIPAC” coalition, a concerted effort to counter AIPAC’s influence, particularly its aggressive stance in U.S. elections and unwavering support for Israel’s actions in Gaza. This coalition, which includes mainstream left-wing groups like Justice Democrats and the Working Families Party, as well as organizations focused on Palestinian rights like Jewish Voice for Peace Action and the IfNotNow Movement, represents a unified pushback against AIPAC’s agenda.
The “Reject AIPAC” coalition has highlighted how AIPAC’s electoral arms, AIPAC PAC and the United Democracy Project (UDP), have used massive financial resources—reportedly up to $100 million—to target progressive candidates who have criticized Israel’s actions in Gaza. This unprecedented spending, particularly in Democratic primaries, has been met with growing resistance from within the party. Even some traditionally pro-Israel Democrats have expressed concern that AIPAC’s heavy-handed tactics are undermining the democratic process and alienating key constituencies.
AIPAC’s strategies, once effective in silencing dissent, are now facing significant opposition as more Americans, including an increasing number of progressive lawmakers, question the wisdom of uncritical support for Israel. The lobby's actions have led to a broader questioning of its role in U.S. politics, with critics arguing that AIPAC’s influence is at odds with democratic principles and human rights. The rise of the “Reject AIPAC” coalition is a clear indication that the lobby's power is being contested in ways that were unimaginable just a few years ago.
The Future of Gaza and the Israeli-Palestinian Conflict
The situation in Gaza remains dire, with Israel continuing its genocidal campaign against the Palestinian population. Despite the massive loss of life and destruction, Israel has failed to defeat Hamas or achieve its broader objectives. The conflict has only deepened the resolve of the Palestinian people, who remain committed to defending their land at all costs.
The international community is slowly beginning to turn against Israel, with growing calls for accountability and justice for the Palestinian people. This shift in global opinion, combined with Israel's internal crises, suggests that the days of the Zionist state are numbered.
The future of Gaza and the broader Israeli-Palestinian conflict remains uncertain, but one thing is clear: Israel's current path is unsustainable. The country faces a long and difficult road ahead, and its ultimate survival as a state is increasingly in doubt.
International Isolation: Israel's Descent into Pariah Status
Israel’s aggressive actions in Gaza and the West Bank, combined with its increasingly right-wing policies, have driven it into deeper international isolation. Once a state that could count on the unwavering support of Western powers, Israel now finds itself losing allies and facing growing condemnation on the global stage. The label of a "pariah state" is no longer a far-fetched notion but a stark reality.
European nations, traditionally more critical of Israeli policies, are leading the charge in holding Israel accountable. The European Union has begun reconsidering its trade agreements with Israel, and some member states have initiated discussions on imposing sanctions. The United Nations has also taken a firmer stance, with increasing resolutions condemning Israel's actions and more frequent calls for investigations into war crimes. The International Criminal Court (ICC) and International Court of Justice (ICJ) have amplified their scrutiny, signaling a potential shift in how the international legal community deals with Israel.
Beyond Europe, Israel’s actions are causing friction even among its traditional allies. Relations with the United States, while still strong at an official level, are becoming strained as public opinion shifts. A growing number of American politicians, particularly within the Democratic Party, are voicing their concerns over U.S. support for Israel. This shift is mirrored in other parts of the world, where countries that once had quiet, if not supportive, relationships with Israel are beginning to distance themselves.
In the Global South, Israel’s actions are increasingly seen through the lens of colonialism and apartheid. Many countries in Africa, Asia, and Latin America have begun to draw parallels between their own histories of colonial oppression and the Palestinian struggle. This has resulted in a significant drop in diplomatic relations, trade partnerships, and international support for Israel.
The Arab world, now more united in its opposition to Israel, is further isolating the state. Israel’s failure to maintain its divide-and-rule tactics among Arab nations has backfired, leading to unprecedented levels of cooperation among its neighbors. The reclassification of Hezbollah by the Arab League is just one example of this new unity. Furthermore, Israel's attempts to normalize relations with countries like Saudi Arabia are faltering, as these nations face domestic and international pressures to stand with Palestine.