Income inequality

Professor Angus S. Deaton says:

Coming to Third World countries such as India, do you think there is a trade-off between inequality and poverty? 

• No, not in any simple way....I do believe that growth, in its initial phases, is uneven , and doesn’t necessarily benefit everyone. I also believe that growth is necessary for (income) poverty alleviation. So to reduce poverty in the long run, we may have to put up with increasing inequality for a while. But as long as poverty is falling, I am not too worried about modest increases in inequality. 

I have already written in this blog. But still, to give you quick reference. You will get altogether different view point if you read what Austrian economist Von Mises wrote in his article on Inequality of Wealth and Incomes.