[majewsky]

I think you're missing the point, and you actually agree with grandparent. When people point to extreme wealth inequality, they usually argue that redistribution of wealth will give said money to people who actually use it to consume, thereby getting it back into circulation and benefitting their local economy.

[kermitfrog]

Hi, I'm Rich Factory Owner. If you take my profits and redistribute it among the people to consume, that's a great opportunity for me and my buddies to raise prices to make up for the difference!

[dane-pgp]

Is your argument that governments should do more to stop illegal price-setting cartels? If so, I agree with you.

[zhjansbnas]

You just increased demand and took away the capital that I could have used to meet that demand. I don’t need a cartel to tell me to raise prices.

[wavefunction]

Or you could just get some 0% loans from FatCat Banker and satisfy the demand that way.

I get it though, your Rich Factory Owner can only conceive of screwing someone over rather than taking advantage of all the social benefits they have access to as Rich Factory Owner.

[wahern]

That depends on the price elasticity of yourself and of your consumers. In a society with extreme inequality it's not a bad presumption that consumers have high price elasticity and producers low price elasticity, at least for non-essential goods.