Clearly, if the latter would happen, and we are on that path right now, we are bound for a distopian future.
Old economic models don't work anymore, we need radical changes. If we don't plan them, they will come in the form of either revolution, or brutal repression (ala China).
In the limit the only beneficiaries are shareholders, who now own all the wealth and capture all of the productivity.
You now have a choice between a neofeudal dystopia where a small percentage of the population lives like emperors while everyone else is relegated to a shanty economy where they fight over scraps, or you stop the nonsense and set up a humane economy where all productivity is redistributed and humans automatically have economic freedom as a birthright without having to work for it or inherit it.
Currently we're on our way to the first option. But the second is the only viable long-term outcome - because in the limit the wealthy will continue to play status games with wealth, and the circles of distribution will become smaller and smaller until eventually literally everything is owned by a small handful of individuals and - perhaps - their immediate families.
That's been the case for most of human history. I don't see why this isn't a viable option again. High technology does not mean a humane society. For the majority of the last 10,000 it was pretty much the reverse. Egalitarianism meant primitive, starvation and deprivation meant wealth.
Of course one only need read what happened to monarchs for most of the period. Being king is good, less so when you become furniture for the next king.
Also, you're wrong. Egalitarianism has meant a lack of luxury relative to what was possible at the time, but a better baseline for the population as a whole.
>Egalitarianism has meant a lack of luxury relative to what was possible at the time, but a better baseline for the population as a whole.
[[citation needed]]
The population of China was larger than any of the time and the majority lived in poverty so great the Europeans who visited were shocked by it.