Capitalism is a mode of production that moves assets to their highest valued uses.
Voluntary transactions create wealth because they move assets from lower to higher valued uses. Taxes destroy wealth because they deter some wealth creating transactions from taking place. Subsidies destroy wealth because they encourage wealth destroying transactions, i.e. those that move assets from higher to lower valued uses. Price controls destroy wealth because they deter some wealth creating transactions from occuring. Porter Characterizes 5 Market Forces that erode firm profits and lead to efficiency.