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. The chief virtue of a capitalist mode of production is its ability to create wealth. Wealth is created when assets are moved from lower to higher valued uses. Value is defined as the amount of money that an individual is willing to pay for a good. This definition of value is different from those used in Communist or Socialist systems.