You can repeat the living standards meme as often as you like, but when people think the system is rigged against them, they will try to burn down the current system (best case just by election) and replace it with whatever might be more fair. And become susceptible to crappy populist promises.

So: yes, the rising inequality is a problem, no matter how badly some want to sell that as just a part of life (at least the way we currently structure it).

And i don't want a communist utopia. But also not reducing taxes for top earners to zero.