Inequality harms the whole, especially the top 1%

We know that over the past 20 years or so, inequality in the US has risen significantly, but considering we are maybe the most advanced economy in history, how can we know that this is harmful and, if so, where is the harm? Inequality, at high levels, dampens economic growth. Most think, inequality is a positive for the top earners and a negative for the working and lower classes, which i may argue is not the case. Since inequality dampens economic growth, this means that there is less fluff in the pie to cut to each class, meaning that the 1% gets less than optimal, as does the 99%. We know that extreme inequality is harmful, but what levels are optimal? The Gini index, which measures inequality on a 1-100 scale, where 1 means everybody has the same income and 100 means 1 person has all the income, puts the threshold at 27, where below 27 is near optimal and above 27 is harmful to the whole. Considering these statements, let us dig a little deeper.

What are the pains of stunted economic growth and inequality? If the marginal utility per unit of income of the top earners is greater than that of the lower earners, we are at a sub optimal point. This hurts the one percent in two clear ways: there are fewer qualified workers and there are fewer people to buy the products that the one percent creates. The US is currently at a 41 Gini index value. All the US has to do is get our Gini index below 27, and we may be able to reach an optimal point of inequality. The ends are obvious, but the optimal means are complex. Some redistribution is optimal, but too much stunts economic growth even further. A greater minimum wage gives the working class more money, but pushes people out of work due to the higher cost of labor. With every means to redistributing wealth, there is always a but that makes the idea less promising. I believe the answer lies within the education industry, because with a more affluent population comes greater wages and wealth, with a more vibrant middle class. With growing demand for higher education, the prices have skyrocketed. These costs must be driven down, or there must become other avenues for the population to become affluent rather than the traditional college. College prices must go down to the point where, if the job market is tough upon graduation, the recent graduate can still afford the debt they have incurred working a sub optimal salary. At this point, we may reach an optimal Gini index value. 

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