Is Inequality Good for Growth?

Economists used to say that if everyone just got richer, then inequality wouldn't matter so much. But since the eighties now, we have seen huge changes in equality. Less inequality goes along with higher taxation, and therefore distorts incentives. Inequalty of opportunity means some people work more; this is semply positive because it's good for growth. Of course, there shouldn't be too unequal opportunities, otherwise we don't have the same chances to start with.