alt Hacker NewsUnfortunately this is not what happens. The Big Short is a good (and fun!) primer about collapses:
https://www.youtube.com/watch?v=0k5aVLi_yhM
When the market crashes, a lot of people lose jobs, and a lot of people die. Everyone suffers but those with money suffer the least, by far.
Not quite. Poor people suffer more in real terms, but rich people suffer more in nominal (dollar) terms. Nominal inequality gets reset.
Don't let the term "nominal" undersell this: it's nominal inequality that locks working people out of assets and imposes upon them the need to service the (otherwise) exponentially growing profit expectations of their economic complements. At no point in the cycle is it better to be poor than rich, but the contractionary quadrant is the one where the gap shrinks.