This isn’t the natural progression of free market capitalism though. The money will flow to those who are best able to use it to control the behavior of their customers spending. Making someone happy is just one way of controlling their spending, but there are many, many others.
Capital flows to those most able to make money, which isn't necessarily by "converting it into the most happiness." You can even see it in this space: Facebook is the dominant social network and wins by essentially getting people addicted to getting mild social affirmations from a slot machine. Studies have actually shown social network use makes people less happy.
But no, I'm sure literally everything government does that interacts with the market just creates corruption without sufficient benefit to outweigh any such harm, and it'd be better if we didn't do anything at all. Certainly it's easier to think about politics if we can permanently rule out an entire class of solutions this way, saving us from having to consider and weigh each per se. Bonus points if we can define "liberty" as "fewest things outlawed by government"—measuring that is way easier than trying to figure out the degrees of freedom of action available to ordinary people in practice.
Innovation would be my preference. The more corrupt a monopoly becomes, the more motivated the best engineers are to join a startup with a "Don't be evil" mission to take them down. ;)