Is Israel's Iron Dome Defense System Worth The Cost?

Photos released in January by the Israeli Defense Ministry show the Iron Dome system at work, as a missile homes in and strikes a rocket. The system could cost $1 billion to fully deploy, and some analysts doubt it would protect vulnerable towns such as Sderot. (Israeli Defense Ministry / January 6, 2010)

Israel's 'Miracle' Anti-Rocket Defense Plan Raises Anxieties -- L.A. Times

The Iron Dome defense system is billed as a surefire guard against rockets targeting Sderot and other vulnerable Israeli towns. But many Israelis question its effectiveness and cost.

Reporting from Sderot, Israel - The rockets may not strike as often these days, but residents of this working-class town say they can't shake the anxiety that comes with living in Israel's most frequently bombed city.

Pedestrians strolling downtown keep an eye out for the nearest concrete-reinforced bus-stop shelter in case public loudspeakers crackle with a 15-second warning to dive for cover. Many motorists forgo seat belts so they can ditch vehicles quickly.

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My Comment: The key part of this article is the following ....

..... The system is expensive. Each mobile battery costs about $25 million, according to Rafael. Interceptor missiles reportedly cost up to $50,000 apiece.

That compares with as little as $50 needed to construct each of the Kassam rockets favored by Palestinian militants, which are usually produced in low-tech factories using old pipes, fertilizer and scrap metal.....

Hmmmm .... from where I stand the economics does not make sense.