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Was there no separation of church and state back then?

Moreover, I hereby decree what you are to do for these elders of the Jews in the construction of this house of God:

Their expenses are to be fully paid out of the royal treasury, from the revenues of Trans-Euphrates, so that the work will not stop. Ezra 6:8

            Government and whatever religion they practiced worked hand in hand back then, sometimes for the good, sometimes for the bad (just as it does today).  Israel itself was supposed to be a theocracy, where God ruled the country.  Back then, the monarchy (or dictatorship) could force everyone to focus on their every whim.  In this case, it was a good thing since the king pointed to the one true God.