I’m sure that if they double down on socialism a couple more times, they’ll be right as rain. And if not, they can always blame someone else for their problems, so win-win.
It’s pretty clear that the US government has been buying influence over Israel with all those billions. Lacking it, the Israelis would have been unfettered in its defensive wars with its Arab neighbors, and peace would have broken out in the region about a half century ago. Israelis, Arabs and US taxpayers would have all been better off. New Caliphate fantasists and anti-Semites would have been heartbroken.
The government discourages people from putting property up for rent, and drives existing landlords to despair and bankruptcy, creating a crisis of insufficient housing.
To solve this government-manufactured crisis, the government will step in and become everyone’s landlord. It won’t hesitate to throw tenants out of favor onto the street, and they will have no recourse. It’s the Soviet Way.