[matthewdgreen]

Again, you are talking about a world where the economy is not static: where there is room for overall economic growth that exceeds the wealth-concentrating effect. That’s the world we’ve lived in for at least the past few decades. But there’s no immutable law that says we’ll be able to maintain 3-10% GDP growth forever. There have been many periods of economic stagnation in the recent past where wealth concentrated exactly the way this model suggests. And there will be similar periods in the future, whether that’s the near future (demographic decline) or slightly more distant future (exponential growth can’t continue forever.)

In either case it is useful to understand the underlying concentrating effect even if one believes it is tolerable because other effects dominate.