The article of record as published may be located at http://www.gloria-center.org/2006/09/morag-2006-09-09/This article examines the economic, social, and political impact of four years of intensive terrorism on Israeli society. This article surveys economic data on GDP, employment rates, foreign direct investment, stock market performance, as well as other parameters. It also analyzes available data on public opinion voting behavior, and psychological well-being. After surveying and analyzing the data, the author concludes that the impact of terrorism on Israel during the period in question was far less significant than conventional wisdom might suggest.