Israel: Boomchik

By ordinary economic rules, Israel ought to be in receivership. After more than a decade of living beyond its means, the country skidded into a deep recession in 1965 when Premier Levi Eshkol's anti-inflationary slowdown proved too abrupt. Unemployment jumped to 10%, and the government for the first time in its history was forced to put the jobless on the dole.

Then came the Six-Day War. It cost the nation of 2,669,000 people more than $1 billion, and Israel is still paying the price of victory. Since the war, the military budget has...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!