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There's a free market idea that the market rewards those who provide value to society. I think I've found a simple counterexample.
Imagine a loaf of bread is worth 1 dollar to consumers. If you make 100 loaves and sell them for 99 cents each, you've provided 1 dollar of value to society, but made 99 dollars for yourself. If you make 100 loaves and give them away to those who can't afford it, you've provided 100 dollars of value to society, but made zero for yourself. Since the relationship is inverted, we see that the market doesn't reward those who provide value. Instead it rewards those who provide value to those who provide value! It's recursive, like PageRank!
That's the main reason why we have so much inequality. Recursive systems will have attractors that concentrate stuff. That's also why you can't blame people for having no jobs. They are willing to provide value, but they can't survive by providing to non-providers, and only the best can provide to providers.
It seems like you have just reinvented the criticism "if you can extract almost all the value from each transaction (aka 'exploitation'), you will shortly be rich". Well, yes, but the point is that a market with competition generally prevents you from doing that. As someone pointed out, if you make 100 loaves then you have created 100 dollars of value; the question is how those 100 dollars are distributed. You construct an example where the baker is able to capture 99% of the value he created; good for him, but it relies on your construction of the price. Seeing the baker get rich, won't a bunch of other people decide that bread-making can't be that hard, make some loaves, and sell them for 98 cents? And so on until the price of bread is equal to the cost of production plus the smallest profit anyone is willing to live with, which in your example seems to be a penny.