Remember that inequality was huge way before the industrial revolution. You know how feudalism worked, right? A few dozen filthy-rich noble families + 99% of population in abject misery, was the rule for most of Europe in the best part of the previous couple millennia. Situation improved with the ascension of bourgeoisie, but even that was limited to a small fraction of population that lived in big cities, in a time where almost everyone still worked the fields. The industrial revolution replaced old methods of economic exploitation with new methods, no big change for better or worse. Competition forced the bulk of industrial efficiency to benefit consumers; suddenly a good overcoat was not a luxury for the rich, etc. which started a virtuous economic cycle - and also meant that profit margins were NOT so fantastically big for capital owners. It's sure big fortunes were made by the barons of early factories and railroads etc., but the elites were already making tons of money before any new tech.
"people started to become aware of the inequality and the leaders and states started to see the result (in Russia and other countries) of this inequality being challenged."
People were always aware of inequality and injustice. The real change in the industrial revolution is that exploited workers were concentrated in cities, and even more, in companies / factories, so they could organize easily and fight for better working conditions, which was almost impossible for peasants living in tiny groups miles away from each other.
"What I believe has yet to be achieved is a balancing of the externalisation of costs with the need to build a system that is able to sustain itself. For the current system to survive, those who have need to find ways to increase the comfort and conditions of those who have not."
Agreed here. This balance is a never-ending struggle, any economic model is only sustainable when the bulk of society have disposal income to drive demand.