That should move the money to those who aren't fools and thus make the economy more productive.
That doesnt mean the economy is more productive.Speculators/scamers for instance arent that useful for that purpose.And $ easy made is $ easy spent.
The power-law distribution of wealth insures that the money ends up with those who know how to save and invest[1].
[1] A. Dragulescu and V. Yakovenko. Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States