This makes the obvious basic point that countries with high income inequality exhibit higher levels of mental health issues.
https://www.counterpunch.org/2019/02/18/of-stress-and-inequality/
All resource allocation methods have consequences, both positive and negative. Once you have adopted a method (such as lightly regulated capitalism), it is important to implement measures to both maximize the benefits and minimize the negative consequences produced by that approach. Of course, you also need feedback loops and mid course corrections. That is just basic management science.
It seems to me that we are falling short on mitigation measures for known negative consequences of our policy choices.