I wonder if there is a feedback loop between this phenomenon and income inequality. People in the "lower middle" income tier can't afford anything but the cheap

I wonder if there is a feedback loop between this phenomenon and income inequality. People in the "lower middle" income tier can't afford anything but the cheapest basics (or are forced to switch to used cars), so demand becomes skewed towards higher quality stuff, so the product mix gets adjusted towards higher quality stuff, further increasing prices, etc.