Taken from the future thread of Suomi Oy:
It bothers us too, although the degree of understanding of the issue probably varies. If wealth accumulates to a few, there simply isn’t much left for others. This is true even if wealth is also created “out of nothing” through innovations etc., if the accumulation is faster than this.
If the purchasing power of the majority is small and shrinking, it has a strong deflationary effect in my view. Similarly, the lack of demand due to population decline pushes prices down. Automation improves companies’ cost structures and promotes accumulation, while at the same time making production more efficient and pushing prices down.
In a deeply deflationary economic environment, it would be difficult for anyone to grow, although agile tech companies certainly grow faster than average. Of course, central banks do their best to avoid a deflationary spiral. On the other hand, inflation is not good for high valuation multiples either.
Unfortunately, dismantling wealth disparities is based on the wealthiest at least relatively becoming poorer. This means a nominal decrease in asset values, i.e., losing money, or a real decrease in value through inflation. So, the enrichment of others also dilutes existing concentrations of wealth. We just don’t know how long the current situation can continue.
People already disapprove of “ideological unemployment” as free-riding. It won’t be long before FIREing, especially with inherited wealth, is equated with this from the perspective of social participation. The risk of violence is obvious.