I don’t think you can think of it as some sort of logical plan. It’s a bug, not a feature, of capitalism. What you are describing is the inevitable end of a completely free market with no regulation. The strong (economically) keep taking from the weak until we have the situation you are describing. From there the next step is dependent upon whether the weak form a cohesive identity and seize power (revolution) or stay fractured around smaller identity cleavages (race, religion, gender, etc) and are subjugated.
This is 100% correct.
Also don’t discount the economic system working as intended. If I get off the hamster wheel to “riot,” my family quickly loses basic necessities.
Once my best alternative to a negotiated resolution moves off that reality (meaning keep my head down and my family will get through this) more options become available. The system is designed to keep a critical majority on the wheel.