I both disagree and agree. We should be able to live happily without trying to keep up with the neighbours or covet their good fortune. But that's a macro level

I both disagree and agree. We should be able to live happily without trying to keep up with the neighbours or covet their good fortune. But that's a macro level thing. Inequality is a real issue where too much wealth gets funneled to the folks who already have the most wealth and in such a way that it gets worse over time. What you describe doesn't seem to be at odds with what I think of as the inequality problem - a larger proportion of economic value going to folks doing the work rather than the capital investors. It might not even be that drastic a change for that to have real effects over time, and the rich would still be rich.