This article from the Economist is, not new, but still sort of interesting. It claims that the rising inequality is a consequence of democracy, rather than a flaw in democracy.
First, they refer to Acemoglu et al which suggested that democracies would lead to increased tax revenue, but does not necessarily reduce income inequality.
Then they consider the reasons for this disconnect borrowing from Epp & Borghetto. Epp & Borghetto compared two hypotheses regarding the effects of economic inequality on legislative agendas: (1) that policymakers will act to counter rising inequality by renewing their focus on redistributive social policies; (2) that rising inequality makes legislative agendas especially vulnerable to the influence of economic elites, and that these elites will attempt to keep redistributive social policies off the agenda. Empirical studies between 1941 and 2014 supported the latter hypothesis.
Some says inequality rises until it's checked by disasters like wars or revolutions, and others still believe in the virtue of democracy and its people.