The reason that economic inequality has become such a talking point is that economic inequality has far reaching ramifications for our society. Many see a retu

The reason that economic inequality has become such a talking point is that economic inequality has far reaching ramifications for our society. Many see a return to higher levels of inequality as a reason for slower growth and social problems. The reason why inequality is the problem and not simply poverty is because when the 'target' is poverty, all we do is basically put a band-aid on the problem. We look at the poor with pity, segregate them, throw a minimal amount of money at them, maybe a social program or two, and forget about them. However when you study inequality as a whole, you begin to see a bigger picture - one where the erosion of the middle class, the widening gap between those with capital and those without, and how that relates to poverty levels, economic growth, living conditions across society, etc... As PG and others have said, back in the day you could be a factory worker, or any sort of blue-collar labourer and afford to have a stay at home wife, 4 children, a house and a car. Now that lifestyle is a luxury only the rich can afford. What's the difference? We know it's inequality, yet for some reason people make up all sorts of excuses and reasons for why this inequality is somehow 'better'. Anyhow, economics is hard enough without trying to come up with overly simple explanations like "inequality is good because start-ups". There are start-ups in socialist countries (France, Sweden, Finland, Denmark, etc...), in less socialist ones (US, Canada), even in countries that barely have functional governments. Not to mention, all the research that shows a safety net actually contributes to entrepreneurship (in the US, that means upper-class family).