In the small picture income inequality only matters if our income is less than those around us. So we compare our income with those we can see. And we are reasonably content if there is income equality in our peer group.

But in the big picture we trade off freedom and equality. And it seems there is no equality without freedom. But we limit freedom with equality and we limit equality with freedom.

I think though our problem is now that we live in the global village and we know which groups live on a $1 a day, and which groups recieve million dollar bonuses according to their market value.

So in the global village our peer group is now everyone, and alas everyone has huge income inequalities, and so we are discontent in the global village.