Instead of concentrating as much money as possible into 1% of the population, the same money could be in use by a much much larger middle class.
That's also where you will find the ones to pay for socialism. The poor can not pay for the aid they receive because they are poor. The rich avoid paying anywhere near a decent amount compared to their income or assets, even if it means moving to a different country. So the middle class is what supports a socialist system. And if you look at the countries with the happiest populations, you'll notice they have the largest proportion of middle class, and are welfare-states.
Socialism isn't a big on/off switch, it's a sliding scale of attempting to rectify the injustice of the powerful (rich) exploiting the powerless (poor).