If the wealth would be used to create well payed jobs in private sector, than yes, you are correct. But it isn’t. It’s used to generate more wealth. By investing in technologies which make even more workers redundant. productivity and workers income have been decoupled since the seventies with the advent of the computer. People are just not profitable enough any more.The wealth is therefore only used to generate wealth for those few who are in control over it. And only those benefit from it, not the society that created the environment for wealth creation in first place.
We could implement negative feedback loops, may be in the form of taxing on a curve. Like grades in academia or bonuses in corporations, we all understand that it is not fair but it is the best generic solution we can come up with. We agree that only some percent of students gets A and some gets F. We enforce the curve in totally free market of students achievements, i.e. we do not regulate how long they stay to study or whether they use extra tutoring to get ahead. Same thing in every big corporation – end of a year bonus – some percent of workers get high end, and some get nothing or even fired. And the percents are enforced regardless of total team success. Is it fair ? Well, it works to the benefit of the whole institution, not specific members.
But I, personally, do not like that. I’d rather have tax credits for those creating private sector jobs, than enforced curve. Academia and big corporations are proxies to socialism as political order not to free market. And negative feedback good be done with expressing our social norms in terms of existing tax law.