The problem with the extraordinary income gap that has developed in most of the market economies of the modern world is that it gives the lie to the strongest argument in favour of unregulated capitalism; and that is that all members of a society can benefit from economic growth. That is certainly not the case in the last few decades in which the incomes of the average citizen have essentially been frozen while those of the ultra-rich continue to increase out of all proportion to their contribution to society.
It also gives the lie to the argument that the ultra-rich are job creators as there has been no corresponding increase in the number of jobs created. High levels of unemployment continue to exist in many nations worldwide
At the same time as these inequities have developed citizens have been encouraged to continue spending in order to maintain economic momentum, however, with wages that barely match the rate of inflation the only way the average citizen can do this is to borrow, resulting in record levels of indebtedness.
There really are only a few solutions to this situation. One is to tax the incomes of the wealthy more heavily. Another would be to increase wages and benefits for the average wage earner or a combination of the two, but given the fact that most governments are in the hip pockets of the wealthy don't expect any change soon.
