Is this the algorithm or just late-stage capitalism / pre-post scarcity economics? I think situations like these will only become increasingly prevalent as time passes thanks to technological development decreasing the raw resource cost of goods and services. Because while we have a good mechanism for reliably increasing productivity and efficiency, no analogous mechanism exists for distribution. Thus profit / wealth…
You could simply give people more than just some drips that keep them on the edge of desperation. Whether or not you consider that socialism, it has been quite successful in a lot of countries. The failure of a totalitarian dictatorship in no way implies that excessive wealth inequality is the only alternative.