The article explores how income inequality affects the economy. It suggests that current economic theories on inequality are lacking and proposes a new approach based on complex systems science. The new theory views the economy as a system of connections between individuals, where inequality naturally emerges. While inequality can provide incentives for investment, it can also hinder innovation and economic adaptability. The concentration of wealth can create barriers to entry and make the system vulnerable to failures. Applying Amartya Sen's capabilities approach to policymaking can help achieve a fair and efficient economic outcome.