u/lunchbasket

Something I've thought about, especially after I've seen discussions relating inflation with COVID stimulus payments:

Suppose, through some means, income and wealth became more evenly distributed (e.g. let's consider the US). Will the fact that the lower percentiles now have more dispensable cash mean that inflation will follow, such that it would "cancel out" the increased cash? If so, does this mean that an unconstrained free market economy will require that the lowest percentiles will always just be scraping by?

I'm sure the answer is complicated, but maybe you all have some insights?