Do the wealthy 1% not generate money for their wealth?

I've been trying to understand economics as it relates to the wealth gap all day. I've read a lot of opinions and theories from a lot of different places. I'm not trying to pick a political side, I just want to understand how money works. I am concerned that my ignorance of this topic, as well as the ignorance of others, could lead to policies that will inadvertently hurt many people. I have some questions that I would love to hear the answer to, preferably from experts.<br><br>My current understanding is that wealthy people (when they aren't spending it) keep their money in a savings account which earns minimal interest (1-2% annually). This money is then used as a funding source for loans that banks give out at a higher interest rate (6-24% annually). This is how banks make money, by paying out less in interest to the savings accounts and collecting more interest from the loans that they give out. So, wealthy people and their savings accounts are a crucial part of the loan system because they act as the banks' source of funds for the loans. Without the wealthy and their savings accounts, the banks would have less money to give out in loans which could hurt the economy.<br><br>My first question is whether my understanding here is correct. Is the bank's money for loans really supplied by wealthy people and their savings accounts? Or is this money coming from somewhere else entirely? Or is money just being printed out of thin air?<br><br>However, my understanding is that wealthy people also make money by employing workers and selling products. They pay their workers far less than the amount of money that they generate from the product they produce. This is how the wealthy are able to stay wealthy. There is an argument that capitalistic jobs inherently exploit the worker, because the workers don't get paid enough to cover the costs of living in the society that the wealthy have created. I don't really know enough to have an opinion on this subject, but I don't want to hear your opinion on it. I want to know if this is a correct understanding of the situation. Do wealthy people, by employing workers, not generate even more wealth for themselves (over and above what they get from bank loans)? Over the long term, wouldn't this wealth that is being generated create an ever larger wealth gap? If this is true, it seems like tweaking the loan system may not be enough to solve the issue of wealth inequality.