Short Answer 
Wealth inequality poses a significant risk to the economy by reducing overall demand and hindering economic growth. Concentrated wealth can lead to economic stagnation, less innovation, and fewer job opportunities, creating an imbalance between supply and demand that destabilizes the economy.
Step 1: Understand the Impact of Wealth Inequality
Critics argue that wealth inequality poses a significant risk to the economy. A key concern is that as wealth becomes concentrated in the hands of a few, overall spending and demand for goods and services may decline. This decrease in demand can hinder economic growth, making it crucial to recognize how unequal distribution can affect everyone.
Step 2: Potential Risks of Concentrated Wealth
The critics highlight that it is not about whether wealthy individuals can create jobs or invest; rather, it’s about the risks associated with concentrated wealth. This means that when wealth is unevenly distributed, fewer individuals have the means or opportunities to contribute to economic activity. As a result, the potential for economic stagnation increases, which can lead to less innovation and fewer job opportunities for others.
Step 3: Connection Between Wealth Distribution and Economic Stability
The relationship between wealth distribution and economic dynamics is critical. If the purchasing power of most people is weakened due to wealth gaps, it can result in an imbalance between supply and demand. This imbalance may contribute to economic instability, as fewer consumers can afford products, ultimately affecting the livelihoods of producers and the health of the economy as a whole.