Market Theory: Upper limit of capital/weatlth accumulation? Politicians often bicker about how big the government should be when it comes to redistributing wealth. 

Question: My question is simple; would a laissez-faire approach to the market always result in inequality? Is there an upper-limit to capital/wealth accumulation? That is to say, if the governments never step in, are there any market mechanisms to counter-act a few people absorbing extreme levels of wealth?

Note: I want to focus on free markets as much as possible, but if we so choose to go down the rabbit hole of "equality of opportunity" and "equality of outcome" here are my two cents: "Equality of outcome" comes off as Orwellian and dystopian in that the economy is planned absolutely, but "equality of opportunity" implies winners and losers under a market where people are free to produce, consume and compete.
A market is an social institution with various attributes and works under complex conditions. Under some conditions a pure monopoly is the only known limit.

Markets are creations by human intelligence and will not exist if not used for merchand. The market mechanisms are used in our society to enable a complex, diverse, work-sharing economy. Not the other way around.

Side note: The question is not how big a government is. A small government can have a bigger impact on a market than big government.


  My question is simple; would a laissez-faire approach to the market always result in inequality?


The reason why markets are so useful, they lower the costs to synchronize the various supplies with the societal limitless demands (individual demands can be limited). Markets can react to  technological, cultural and knowledge changes in the societies. But they depend on the kind of economy wherein they function. When the economy prefers bigger enterprises than many small firms, markets can not change much on these structures. Nevertheless the answer to your question is no. When a market starts under the condition of fair distribution and some other factors like transactions costs, market entry costs, costs for research and development and others don't play an important role, markets can stabelize the fair distribution of wealth.