The solution to the demonstration in Israel? Worsen the situation:

Israel's interior minister has given final approval for the construction of 1,600 new settler homes in occupied East Jerusalem, his spokesman said.

Eli Yishai will also approve 2,700 more homes shortly, Roei Lachmanovich, the spokesman, told the AFP news agency on Thursday.

Palestinians have refused to take part in peace talks while the Israeli government continues to construct settlements in the occupied West Bank.

Lachmanovich said the construction of 1,600 units woud take place in the Ramat Shlomo neighbourhood in northern East Jerusalem.

"He has approved 1,600 homes in Ramat Shlomo and will approve 2,000 more in Givat Hamatos and 700 in Pisgat Zeev," Lachmanovich said, referring to two additional israeli neighbourhoods in East Jerusalem.

Lachmanovich said the final approvals were "economic" not political, linking the interior minister's decision to demonstrations over housing prices and the cost of living that have rocked Israel in recent weeks

If I understand this correctly, these settlements play a significant role in Israel's economic woes. Also, these settlements are fucking political.
Yishai, a member of the ultra-Orthodox Shas party, also linked that construction project to the protest movement, saying it would help address the "real estate crisis".
This looks more like welfare for Tea Party types.