Also, most of us are poor

Yglesias points out here the strong likelihood that income inequality = overpriced assets = unstable financial markets... which generally implies an unhealthy economy.

I think this type of model might be useful when discussing policy with mainstream "liberals" since the moral argument, income inequality = most of us are poor, is generally lost on such people.

Neither will get you very far with the Obama-Summers-Geithner Administration, though since all they understand is income inequality = most of my friends are rich = a system that must be preserved at all costs.