The reason the system is like it is is because of greed. People in power/corporations have been slowly and quietly eroding the middle class because they make more profit. Simple as that. We're sacrificing money for education and quality of life for citizens, to fight wars for oil and wars on drugs, to pay the wealthiest people and organizations even more money. Income equality is growing wider and wider, pay raise rate is tiny while cost of living goes up many times faster, and this has been happening for quite a long time now. This attitude of "work hard and you can be wealthy" is a mantra for so many people. We're being set up to be used. What they want is a peasant working class, uneducated, easily controlled, and trained to work as hard as possible for a pittance, just enough to survive and keep working. It could be a lot different, and it was for a time after World War 2 when the rise of the middle class happened. But as always, the greed of a small percentage of sociopathic power mongers feeding off of the people they control.
In a technical sense, I do not think it has to be that way. However it seems like all throughout history, some people are sociopathic power mongers. Most people wouldn't knowingly make millions upon millions of people suffer for an extra billion dollars over their multiple existing billions, but it seems like some people are just wired that way and it's always been that way and it's those people that destroy every good thing humans have ever done in terms of civilization. It's why every civilization eventually collapses. So that problem seems rather insurmountable, because these people are very good at slowly infiltrating well-working systems and corrupting them for their own purposes and eventually destabilizing and destroying them.