The system that enables the most people to earn the most success is free enterprise, by matching up people's skills, interests, and abilities. In contrast, redistribution simply spreads money around. Even worse, it attenuates the ability to earn success by perverting economic incentives.

This quote is saying that free enterprise (a system in which people are able to start their own businesses and companies without heavy regulations) is better than redistribution (the idea of taking money from people who have more to give it to those who have less) when it comes to helping people earn success. Free enterprise matches peoples skills, interests, and abilities with opportunities to create a successful business – this is the best way for people to be successful. Redistribution, on the other hand, simply spreads money around without considering the person’s skills or interests. This weakens the motivation to make an effort to become successful, as the reward is not tied to success.