Rich people armies… Do you have some good current examples? I only experienced it one time by myself (Thailand - Thaksin) and it was kind of cool. It was a balancing act. He brought ‚power to the people‘ or at least has been perceived that way at that time by 50% of the people.
The poor people in this kind of society are not THAT poor. That is the point. They can survive much better than in any other form of society. Prosperity and wealth distribution is a natural process. That process always starts with one human being greedy and more clever.ä than the competition.
Btw: No taxes means no welfare is obviously wrong too. The donations of the super rich by far succeed all the welfare-tax-spendings.