In a statist social system, taxes, subsidies, tariffs, and regulations often serve to protect existing large players in the marketplace. Those players often use crony tactics to retain or expand the protections: a new tariff preventing foreign competition, a subsidy making it harder for new players to compete with you, or a regulatory measure that a large company has the resources to comply with, but that may be the difference between success and failure for a startup.
In a capitalist social system, on the other hand, the government has no say in how dominant a company may become in its industry or how companies take over and merge with one another (so long as force or fraud is not involved). Furthermore, a capitalist society doesn’t have rights-violating taxes, tariffs, subsidies, or regulations favoring anybody, large or small, nor does it have antitrust laws. (We will discuss the absence of taxes in a capitalist society in more details later in the book.)
Think Right or Wrong, Not Left or Right 