When you study the works of economic thinkers like Ricardo and Smith, you will find rents to be a powerful economic incentive.
Own something that is scarce and turn up the ratchet.
Someone with a million dollars doesn’t have enough money to compete in the type of machines that farmers or automobile titans have. It is requires too much capital.
So, what do you do?
Invest in real estate or perhaps crypto or a VC.
You make small, safe economic moves to go from 1 million to 2. 2 to 5.
When this goes at scale, however, you have a few people that own a lot of real estate. Wealth continues to flow to the top.
The ones on the bottom have no way to break the cycle and despite best efforts have no economic mobility once wealth transfers from one generation to the next.
This is how aristocracies were built. And they continue to this day.
Sure, with real estate you can point to low interest rates, low inventory and high demand for houses. This is true. There are other things behind the curtain that continue to make it hard for those to get what their parents had.