The basic problem with inequality is that it kills the middle class, which is one of the prime engine of growth. Riches only consume a small part of their money

The basic problem with inequality is that it kills the middle class, which is one of the prime engine of growth. Riches only consume a small part of their money, and invest the rest, which produces easily investment bubbles, but not much growth in terms of industry and wealth production. That's (also) why the banking sector is getting so big. At the contrary, a strong middle class also maintains well democracy, and produces continuing growth over decades. Also, take it upside down - why isn't the US currently clearly richer that Europe? Germany, Sweden provide good examples that a bit higher taxing isn't killing the economy, much more the opposite. Also India and China have such a growth because they also produce a middle class, and not only super riches. But well, it's the old discussion libertarians vs utilitarians... ;)