Liberation theology is only a problem when it leaves God out, thus mirroring capitalism.  To get society where it needs to be, the Church needs to be integrated into social services and education, which should be integrated into the workplace.   This is why my book on socialism started with a chapter on Christian Humanism, which overcomes the pietousness of the right and the reflexive atheism of the left.

How we consume goods is a moral act that is best done in a cooperative setting.  That firms make these decisions for their employees is implicit.  Employee-owned firms need to make it explicit, because to control the means of production you must first control the means of consumption (and distribution).

While the behavior of individuals in the system, both the masses and the wealthy, are important, the vital point is that we must go beyond such consideration to a cooperative model or the problem of luxury remains.