Circular how? We're talking about wealth distribution, right? Much of the wealth in this country is concentrated in private-sector capital. By definition, for a company to make a profit it must earn more than it spends, including the amount it spends on labor. So can you see how those who depend on labor to accumulate wealth are at a disadvantage to those who own the income stream of productive assets?
Hey, I've argued 'till my lungs were blue that workers have gotten a bum deal when it comes to the split between labor and capital. Real wages have been stagnant for decades, and have actually declined over the last fifteen years or so, IIRC. Even within the share of national income comprised of wages, those at the top of the scale are receiving a larger proportion than they have historically. So, yeah, we've got a problem. As to why this is so, I've presented various arguments, and there's probably a little bit of truth in each one: the decline of unionization; globalism; the disconnect between executive and worker compensation; the rise of the (relatively low wage) service economy versus (higher paying) manufacturing employment; the disproportional rates of taxation on labor versus capital; etc.
But workers have to face the fact they they've become part of the problem. They've gotten away from the idea of thrift as a virtue. It's all about me, mine, and where the next deal is coming from. Live within your means, folks, whatever they are, and don't waste your time pointing your finger at someone else. It's your fault, too.