No, actual inequality does cause actual problems. 1) Happiness is affected by absolute wealth but as we get richer the effect wears off. Relative wealth however

No, actual inequality does cause actual problems. 1) Happiness is affected by absolute wealth but as we get richer the effect wears off. Relative wealth however retain its effect on happiness regardless of absolute wealth level. 2) Inequality distorts supply and demand in society. In any society there is a limit to labour. If you shift larger part of society's wealth to a few they will command an increasing share of the labour of a society. This will affect what gets produced in society and relative prices. 3) High concentrations of wealth distorts politics. With more equal distribution politicians will mainly cater to the interests of the majority of the people. With extreme wealth concentration society will become increasingly like an oligarchy. Studies show that this has already started to happen in the US. Studies show that what becomes actual practical politics is generally not in line with the will of the majority, but rather with the will of the wealthy few. If you look at societies with high wealth concentrations like those with large oil wealth or other resource wealth you find typically very weak political institutions and poor development of democracy. The super rich gulf states e.g. are far behind politically speaking from much poorer countries.