Money begets more money, certainly.
> when taken too far, has a negative effect on the society in which it occurs?
This isn't possible. A person can either spend money or store money.
When they spend money, they are telling others to perform work. That money then gets transferred to other people.
When they store money, that money gets placed in a bank or in an investment. In a bank, that money is immediately loaned out to someone else, creating a business or some venture, creating jobs and wealth for other people. In an investment, again, jobs are created and wealth for others is formed.
Now, can all of this run in a closed loop among the privileged? Only in a society with heavy government intervention where the market is warped. In a healthy free economy, talented people are quickly recognized and quickly brought into the loop. In an unhealthy controlled economy, you must know the right people to be allowed into the loop and the people allowed into the loop are rarely talented.
> A broader based of wealth occurs when a society is balanced not solely because of the supreme talents of an individual.
From each according to his ability, to each according to his need? History has already condemned your way of thinking.