- The L-Curve graph represents income, not wealth. The distribution of wealth is even more skewed. Quoting from a recently-published book by political philosopher David Schweickart,
If we divided the income of the US into thirds, we find that the top ten percent of the population gets a third, the next thirty percent gets another third, and the bottom sixty percent get the last third. If we divide the wealth of the US into thirds, we find that the top one percent own a third, the next nine percent own another third, and the bottom ninety percent claim the rest. (Actually, these percentages, true a decade ago, are now out of date. The top one percent are now estimated to own between forty and fifty percent of the nation's wealth, more than the combined wealth of the bottom 95%.)
This sight explains the problems with income and wealth disparities that become too large in non-economist language. And how this relates to our current economic problems. It relates to the obstruction to green energy and the push for fracking at the expense of the general population and the environment.
Basic economics explains the connection between supply and demand. This page shows that with high disparities in wealth and income, demand suffers and this hurts the economy. This disparity, also, hinders the ability of competitors to get started, since the capital is concentrated in the hands of those that will lose their advantage with new competition.