If the average prole has less stuff, he's going to be effectively renting his possessions off someone forever. It's like feudalism as another poster stated. Wealth with further accumulate to those with the stuff, and away from the "renters" who will just live paycheque to paycheque.

What's scary is then how much of the "stuff" will the government own, vs the wealthy stuff-owners. At some point, the inequality may become so great that politically, we become a nation where everything is owned and operated by the state, and we just pay them rent via our labour. Sad.