I just got into an argument with a Zionist settler who claimed that in the years of austerity after the Entity was established, that it had state ownership of the means of production, ergo it was a socialist state - but that the state's mismanagement led the settlers to shift towards liberal capitalism. The settler interlocutor also stressed that there were ties between the USSR and the Zionist entity.

So basically, what's up with that, and how can I better argue against Zionism, bearing these facts in mind?