When the middle class has been destroyed and either you are rich or poor, the poor will be easier to control. That's the bottom line. Do what you are told or starve.
Now hold on for minute. You are assuming that people will act rationally and acquiesce to the demands of the Top 1% once they've been deprived of all hope for a better life. But we know that people do not always act rationally. A similar line of thinking went that the best way to control overpopulation was to deprive starving people of food and let them die off. But the starving people do not care what the social Darwinists think. They'll go to extraordinary lengths to feed their loved ones and if we do nothing they become fodder for power-hungry maniacs. Today's desperate refugee becomes tomorrow's terrorist recruit. If you don't give people what they want they'll take it by force.
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