Where you have coerced transactions, like income taxation, you see that wealth actually gets destroyed.
I don't follow. Without that income transaction the hospital wouldn't have been able to hire you, because the money that the hospital is spending originated from income tax.
So either the hospital spending money hiring you is creating wealth, or it's destroying it. Choose one.
Last time I looked, there is still a market for twinkies, so why don't they get off their backside and start baking some?
Hostess will no longer make twinkies != there will be no more twinkies made.
During bankrupcy the assets of Hostess will be sold to the highest bidder. One of those assets is the brand name "twinkies". The new owner will continue to make twinkies if there is public demand for it.