Income inequality is not the problem. Indeed everyone's purchasing power was way lower in the past and still people saved money. People save less money now, and

Income inequality is not the problem. Indeed everyone's purchasing power was way lower in the past and still people saved money. People save less money now, and that's one of the problems. Saving money does mean making the sacrifice of not spending it today, perhaps not even in the future. The other problem is called Central Banks. Central Banks need and force low interests, but then gov. debt is not attractive anymore (except for banks, which buy them with money freshly printed by the FED) and people chase higher returns in the general market. So investors end up fishing in equities, creating a bubble. The problem is that companies that consume a lot of physical resources, like Tesla, are pumped... while companies that dig those resources from the ground are not. In the end this increases scarcity and raw materials become more costly. This ends up driving prices up across the whole economy, it's inflation. Created by Central Banks. But of course when it happens many people will blame the free market.