[sergiosgc]

That's a fairly basic liberal view, profoundly flawed. Consumer spending improves productivity as a second order effect. Consumer spending improves the demand side of the economic cycle, prompting opportunities for investing in efficiently supplying that demand.

The disruption of the demand side of the economic cycle is the reason behind the loss of competitiveness of economies with high inequality. You get capital accumulation that finds no outlet for investment, other than riding economic bubbles.

This open lecture by LSE, although focused on the UK, touches most important points about inequality: http://www.lse.ac.uk/Events/2018/07/20180717t1830vOT/peak-in...