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Democracy exactly leads to economic inequality. WHy? BEcause we elect people to govern in our best interest. Putting power in the hands of the minority gives rise to inequality.
It's for the same reason the communism doesn't work.

As long as the minority have the power, the minority will have the wealth. It's simple.

In order for there to be economic equality, every decision would have to be voted for by the people themselves.

PS: oh and to answer your last sentence, yes, the check and balance is supposed to be there to allow us to elect someone else, but in truth, the way it is set up, it only takes one bad election to fuck up everything irreparably, and the are measures in place that prevent future leaders from undoing policies.