Why Spontaneous Market Order Inevitably Leads toCapital Concentration and Fails to Resolve Itself, Alongwith the Formation of Inflation — Illustrated Through aSimple Narrative

This paper uses a simple story about a tea market town to demonstrate how the spontaneous order of a market economy inevitably leads to capital concentration and cannot resolve it by itself. The story shows that an initial capital advantage (Person A) accumulates wealth by creating demand, grading products, and exploiting wealth gaps to generate symbolic value. As a result, the purchasing power of ordinary people declines, creating a demand shortfall. When authorities try to fill this gap by increasing the money supply, the new money flows first to the rich, pushing up prices of high-end goods while reducing the supply of basic necessities. This triggers currency depreciation, cost-push inflation, and ultimately stagflation. The conclusion is that without external interventions (such as antitrust laws or progressive taxation), the market will not spontaneously disperse capital; instead, it continuously creates new spaces for concentration. Inflation is an endogenous outcome of unequal distribution, and unlimited money printing cannot save the economy—it only worsens the crisis.