Comment by toasterlovin

Inequality doesn't matter, in theory, but it does matter in practice. Like it or not (and I don't like it, FWIW), people measure themselves against other people. A large delta between the rich and the poor shouldn't matter, as long as the poor are doing well enough, but it does matter. We are social animals who evolved in small communities. There is a built in sense that many of us have that those doing better should share with those doing worse. And when things get too out of line, it undermines political instability.