Is inequality a problem in our civilization? Why?

Inequality in democracy.

It's a paradox, democracy only works if people have equal power. They don't need to be equal in intellect or strength or skill in craft. Just in the power they have to make decisions, both for themselves and their society.

Inequality in capitalism.

Once again, a paradox. Adam smith's version of capitalism, which I am considering "true" capitalism, was designed so that the best products and services succeed through competitive markets. They succeed because people want them, and those people must be able to buy them. If all people do not have equal purchasing power the system breaks down, one person can manipulate a market and inflate the demand for products that aren't what the people need. This inflation skews the supply and demand curves and the businesses that create what the people actually need fail. The markets are flooded with less useful things and the system becomes inefficient as a whole.

Inequality in civilization.

Actually, this ones not too bad. I've been a tad unfair, inequality is necessary in any successful civilization, democratic or capitalist or fascist or communist. Civilizations need specialization. If everyone was capable of doing everything equally, there would be no need for collaboration or organization. Everyone would live on their own. That being said, the "natural" inequalities in skills that make our civilizations work is not what plagues our civilization today.

Fact: Civilizations require organization, that means natural born leaders lead. However, an inequality in power that lets inferior rulers lead breaks the system. This holds true in every organization you can think of, you wouldn't want sub-par doctors who are in it for the high salaries or inept police officers who just like the idea of having authority to protect your children. Even the basic labourers, the house builders and the burger flippers, should be the best at what they do, unless health and safety standards don't mean anything to you.

So the idea of an elite group that could use their wealth and power in manipulate every institution to serve their own interests should be scary right? Well, that is what we live in folks. They are aptly named the 1%, they hold 40% of the wealth in the world. They own the mass media, the lobbyists in our governments, they ensure their former employees hold public offices and that their corporations have more rights than a human being. If that isn't a problem... I don't know what is.