"As a result, they end up having access to most of the collective wealth as well." Umm, it does not work like that, look at the Scandinavian-type socialism.

The collective wealth is in the functioning education & health system, social support net, working public transport and such. Not a type of wealth that the government can usurp for themselves, to the detriment/exclusion of the remainder of the society.

Too much ideological argumentation here...