I would prefer a straight capitalist economy.
No you don’t. You are not a “Randist”. Tax money has to go somewhere, and in all truthfulness, the state is directing it towards those who support the state.
Lapid is a “populist”, following the protests of 2011. If he would join with the Charaidim, his party would (rightfully) be thrown out, as that is not what he was elected for. To a large extent, he was elected in the same way and the same reasons as the Charaidim vote: Give us money. The only difference is that this election (unlike most), he was able to deliver while the Charaidim were not.
As per the MDD/BL point, it was a tactical decision by the gedolim/askanim not to join the social justice protests, when they certainly could have done so (and it would have made sense from an economic standpoint). That decision is now coming back to bite them in the nose.