Comment by mitthrowaway2

Not for coconuts, but in the real world, most products have economies of scale. If one rich guy has 99% of the money, the entire economy will be structured to serve his needs and yet nothing he buys will reach economies of scale. He just doesn't care to have that many Rolexes. So production methods will be fairly inefficient.

But if everyone has a bit of money, stuff can get mass produced, which actually makes for much greater total welfare, because the production methods are just a lot more efficient.