Israel is under assault. On Sept. 20 the Palestinian Authority plans to unilaterally declare statehood and go to the United Nations for recognition. This is a rejection of all efforts for a peaceful compromise. In its wake will come waves of Palestinian violence. And yet this is just the latest manifestation of an embattled Israel that is being threatened from the outside—by Muslim Arab states and societies, Egyptians storming the Israeli Embassy, a nuclear-arming Iran (with its local sidekicks, Hamas in the Gaza Strip, Hizbullah in Lebanon), and a besieged President Bashar al-Assad in Syria—and from the inside by domestic upheaval that led to the largest mass protests in the country’s history.

More than 50 years ago, Israel’s leaders, headed by David Ben-Gurion, believed and hoped that they were creating a social democracy, with all the requisite egalitarian accoutrements (socialized national health care, progressive income tax, child benefits, subsidized cheap housing). Ben-Gurion, who owned almost nothing and retired to a primitive hut in the Negev Desert, typified the austere lifestyle, and greatness, of the state’s founders.

This is no longer Israel. A profound, internal, existential crisis has arrived. It stems in part from the changing nature of the country, more right wing, more restrictive, far less liberal, and far less egalitarian. Many moderate Israelis fear the country is heading for ruin. Indeed, the country’s ruling class, including Benjamin Netanyahu and his predecessors Ehud Olmert (now on trial for corruption) and Ehud Barak (a former head of the Labor Party and current defense minister), live in opulence, and the feeling is that they are out of touch with reality. In Tel Aviv, where some 350,000 gathered in protest, a widespread chant, set to a popular children’s ditty, was “Bibi has three apartments, which is why we have none.”