Unfortunately those who were very rich then decided that playing money markets was 'easier' than maintaining the industries that had made their wealth
Tbf inheritance had a lot to do with it too. The wealth was passed to multiple offspring. Offspring who didn't share the entrepreneural talent and experience their father or grandfather had. The companies of the victorian era who have survived had products where the item at the end had a unique selling point that others couldn't replicate easily and had invested heavily in the concept of brand loyalty.
You can't do that so easily with textiles which dominated the North.
The cost of investing in ever better technology was expensive - at times prohibitively even for the most wealthy - and politically equally undesirable to government because it put workers out of business anyway. Those that did attempt it, were taking a huge gamble with their finances, that might have paid off for a decade or two allowing them to survive where competitors didn't before they faced the same repeating problem. Each time you increased mechanical productivity the number of companies the market could support declined and this was competition against cheap labour overseas which exploded with population growth allowing pay to stay low.
The problem was that globalisation of the markets and industrialisation eventually worked against the early success stories who had benefited from it.
I think your assertion that rich people played the money markets is one which neglects the reality of globalisation and industrialisation in which business has an initial period of boom and then gradual decline. Its a well known model to do with market saturation. Often what businesses aim to do and see as a success is to try and maintain a plateau rather than decline. But even then that's more or less seen as delaying inevitably of the economic cycle. Its seen as smarter to get out first.
The only way an economy as a whole had buck that is through innovation and science breakthroughs.
But there may actually be something of a limitation as to how much discovery can be used for economic growth too - a dip in the curve of innovation itself. Which would lead to some very serious economic and social consequences.
There are six or seven avenues I can think of where smart money and innovation might develop and be economic gold mines.
- space mining, exploration and tourism (exploration and colonisation)
- environmental and climate saving ideas (maintainence of land and shelter to maintain and control pressures of population growth)
- development of the next generation of antibiotics and drugs (healthy)
- development of new energy sources - think fission or something completely new (energy)
- development of a cheap and easy way to produce water out of nothing (water supply)
- development of new mass food sources (food supply)
And as always the safe bet
- the arms sector
All are seemingly prohibitively expensive at present - with one exception which can be funded without question via government and patriotism, and politically humans are easier to exploit and more dispensable. That leads to mass scale social unrest and disruption and migration. And war. There is also a desire to stop decline through increased control of the market to suffocating development or innovation or prevent rising social unrest. That's expensive to maintain too.
These areas of breakthrough have been repeated throughout history. There's an eight area too - a means for the storage and passing on of human knowledge (communication essentially). That's the one that had the last big breakthrough.
Once you get through that or have a significant breakthrough in one or more of those other technologies you might start to see political will developing for more investment in those areas.
The point is that the information sector is reached or has reached a peak, and where it goes from here is an ever growing question mark (I see today that Google is shutting down Google + due to a data and privacy breach they told no one about).
Where are smart multi billionaires placing their money? It's not in maintaining the future of information. Sure there's plenty of money still to be made there, but social and political pressures are starting to catch up.
It's not where the next big gold mine is though.