Yes. Wealth inequality in an environment that protects competition is vital to the economy. However a tipping point is reached if competitiveness decreases and the system moves to a type of oligopoly. This often occurs when excessive regulation and crony corruption stymies barriers towards entry into a field.
In much of the West today we are unfortunately either at this point or heading in that direction. Too much power exists with national governments and their corporate allies. This is made worse by the free hand given to central bankers. Fiat currency has had the net effect of wiping out a great deal of real savings and income. The high inflation that we see today is a function of policies that have radically increased the money supply at a time when production rates were deliberately pulled back (Covid, nonsense regulation etc).
What we have is a top heavy Ponzi system that serves the state elite and their hangers on - who can access the artificial money easier - while effectively increasing good prices for the rest of the public. In a sense this is a sinister way of taxing the middle class while pretending not to.
Bottom line….Never underestimate the power of the state to botch things up.
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