Our economic system was based on limitless growth and upon a make believe world which had no boundaries. And it worked for a long time because there was space and people and energy to easily exploit, and it beat out other systems, because it is designed to grow faster than them.
Of course we do not live in an limitless world. We live in a finite world. There no longer is any room for growth. We have tried to invent extra space using tricks like fiat money and exotic financial instruments, but the reality is that our system is based on a fiction. Until we recognize that and alter the system, it won't get any better.
That is also exactly why income disparity is growing. The wealthy and powerful still have the means to carve out more space for themselves. But rather than carving it out of empty space or easy to exploit space elsewhere they are carving it out of us. And they laugh as we fight amongst ourselves, blaming our problems on boogeymen and immigrants. Ridiculous.
Capitalism has failed, yet people worship it like a God. I don't see us willingly casting it away until we get pushed into so small a space that we revolt. And even after that, we will probably just start right back up with the same flawed system.