The hyperlinked evidence, from an excerpt on Lewrockwell.com:
In Israel, the main negative implication of U.S. largesse has been promotion of socialism. Had our country not been financially supporting a heavily unionized and socialized economy in Israel, these policies would likely have never been as large as they were, and would have diminished much sooner. There are strong empirical illustrations attesting to the correlation between size of government and economic regulations, on the one hand, and attenuation of the economy on the other (Gwartney, James, Robert Lawson and Walter Block. 1996. Economic Freedom of the World, 1975—1995, Vancouver, B.C. Canada: the Fraser Institute. For a non-empirical treatment of this phenomenon, see Smith, Adam. [1776] 1979. An Inquiry into the Nature and Causes of the Wealth of Nations, Indianapolis, IN: Liberty Fund).
(It seems to be missing from LRC, but can still be found here.)