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The Need to reduce Financial Aid to other Countries


Tyler Houle
September 29th 2014
Marcus Mennes

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The Need to reduce U.S Aid to Other Countries

Each year the United States spends billions of dollars a year on Foreign and Military Aid to
various countries around the world. According to the Finance Degree Center (2012) the U.S. sent
approximately $37,680,000,000 overseas in 2012 for foreign aid. I want to discuss this topic since that I
believe the U.S. should not provide as much aid to other countries while we ourselves need help in our
own country. I mean you hear all over the news that we provide for other countries, but do you hear
anything about other countries helping us out with the problems we are facing here?
I feel the U.S. should reduce all financial aid to other countries and think of the people of the
U.S. first, rather than countries who want to wage war against us. We have people here that could use
more financial aid. Theres Americans living in the streets, and theres people who can barely afford to
survive, and some have to work multiple jobs just to make it, and that is completely wrong. Let other
countries start to provide finical aid to the countries that need it. They shouldnt have to just solely rely
on the U.S.
Some people might disagree with me wanting to cut off finical aid. People might say its for a
good cause and that its helping build strong relationships with countries in need. But do we exactly
know where these billions and billions of dollars we are sending for aid is truly going. In 2012, there
were ten countries into which we provided over five-hundred-and-thirty million dollars, and thats only
10 countries (Top 10 U.S. Foreign Aid Recipients. (2014, January 1). One of the countries is
Afghanistan and we gave 2.237 billion dollars in Financial Aid. Let me remind you we are at war with
that country and we are sending them money.

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In Detroit, Michigan over two thirds of people living there cant afford even their basic needs
such as housing and health care, even when their family members are employed (Abbey-Lambertz, K.
(2014, September 4). Most Detroit Families Can't Afford Their Basic Needs: Report. Retrieved
September 29, 2014). The city has this program called ALICE which stands for asset limited, income-

constrained, employed. The United Way conducted a study and found that 40 percent of Michigan
households and 67 percent of Detroit families are under the poverty line or fall under ALICE. More
than 900,000 people in Michigan who arent considered poor fit under the ALICE definition. In total,
over 1.5 million Michigan families cant afford their basic needs. Over the last several months the city
has shut off water to thousands of residents igniting protests and claims that the city is violating
humans right to safe drinking water. The water department of the city say they shut it off due to a lack
of the population not paying their bills. More than 60 percent of jobs in the state pay less than $20 an
hour. During the next four years the minimum wage in Detroit will be raising from $8.15 to $9.25 in
increments. The United Way report offers general recommendations to help Michigan families feel
financially more secure by improving job opportunities and developing affordable housing stock.
So now lets take a look at what country receives the most amount of financial aid and what it
goes towards. In 2012 the U.S. gave Israel $3.075 billion in financial aid. Since 1992 the U.S. has offered
Israel an additional $2 billion in loan guarantees. In addition to that there is more than $1.5 billion in
private U.S. funds that go to Israel annually in the form of $1 billion in private tax deductibles, and at
least $ 500 million in Israeli bonds(U.S. Financial Aid To Israel: Figures, Facts, and Impact. (n.d.).
Retrieved September 29, 2014). The total amount of U.S. aid to Israel is about one third of the

American foreign Aid budget. Numerous American leaders over the decades have expressed their
perception that the U.S. and Israel have a special relationship and that the enemies of Israel are

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Americas enemies also. Even though we give them so much money, critics of Israel complain
saying that the U.S. gives them too much money and that the special relationship we have is a liability.
Israel maintains a direct and close strategic role to the U.S. due to the fact that it provides facilities for
the storage and maintenance of U.S. material. Israels effectiveness as an ally to America is directly
related to the financial aid we provide to them. Without the assistance from the U.S. Israel would be
forced to cut its defense budget by nearly a third. The effects of Israels critical defense related research
and development activities would be cut if we were to stop aid since it receives a big portion of the
funds from the aid of the U.S.
After overlooking at both sides of the issue I still believe that the U.S. should limit aid to other
countries. Or at the very least greatly reduce the amount of money other countries are receiving. Like I
said, if you take a look at the people of Detroit, Michigan, you see they are in need of some serious help.
There are families that continue to struggle even when all members of their household are working.
Even though the minimum wage in Detroit is going up from $8.15 an hour to $9.25 an hour it is in an
increment of four years, and thats too long to wait for it to go up. Were giving all this money we dont
have to other countries, why not take some of that 3 billion we give to Israel annually and help out some
of our own cities.