A government is proposing a new economic policy aimed at boosting the middle class. The finance minister justifies the policy by stating, "Our analysis shows that the vast majority of citizens have an income close to the national average, with very few people at the extreme ends of poverty or wealth. Therefore, our policies are designed to support this large central group."

Critically evaluate the finance minister's foundational assumption about the distribution of wealth. Based on empirical observations of wealth allocation, is this assumption likely to be sound? Discuss the potential consequences of designing a national economic policy based on this premise.