You’re making a very strong assumption that resources would get distributed to whoever can best turn them into utility.
Yes I am. If you dont then you dont have a healthy capitalism. The assumption here is you have a healthy capitalism, which i defined as a free market (a market where utility is the determiner of profit, and is not gamed by centralized interests).
Do you have a specific mechanism in mind through which this happens? Or is it just magic?
Not magic, yes. But systems of governments are hugely complex pieces of working machinery. While we can discuss the tenants (such as capitalism, social welfare and others) the specific mechanisms are huge complex and would require an exorbitant amount of time to exhaustively discuss. That say, I am willing to discuss any specific aspects you’d like to challenge as I have so far done.