We need to reverse the trend. Otherwise, eventually, it will lead to violence, as many observers have predicted over the years (and it did lead to revolutions in many countries years ago, and even the Arab spring more recently).
Ways to do it:
- Stop restricting competition through laws that limit entry into various sectors (there's an absurd amount of laws which serve no use other than protecting big business interests)
- Heavy taxes on rent-seeking. There's an absurd amount of rent seeking in our economy, especially when it comes to commercial real estate in urban areas, patents, and many other behaviours (the tab above can be considered 'rent-seeking' since it introduces inefficiencies that favour incumbents)
- Estate taxes. While we love antidotes of the middle-class entrepreneur becoming a billionaire, it's the exception to the rule. While there is a lot of churn and mobility amongst the billionaire class, when you take the top 1% as a whole, they, as a group, are increasing their lead over the rest of society. Yes someone who has $50 million in the family can turn it into a billion. And someone with a billion can lose enough to go back to being a multi-millionaire. But the upper classes in general, due to their large real estate holdings and ability to seek rents, generally stay rich. If one family falls, those assets are likely incorporated into another family. Dynastic wealth doesn't always last, but the 1% generally stays the 1%, due to various dynamics.
- Real progressive taxation. While the lower classes pay lower percentages of income tax, it's stacked against them because their current rates still make up a larger percentage of their cost of living allowances. Not to mention, upper classes have more investment vehicles and tax avoidance vehicles at their disposal.
Anyhow, there's much more to say about it, but what it comes down to is, unless we stop the trend, nothing's going to get better, no matter how much we wish it.