It's quite simple, post the Yom Kippur war Israel started pouring resources into economically unproductive settlement and policing of the captured/occupied territories of Gaza and the West Bank. This is the policy that is ruining the country economically and socially. This is the wake up call that so many ignore!
U.S., allies conduct 31 air strikes in Syria and Iraq against ISIS militants (Reuters)
from the article: From 1948 to 2008