If you have twice as much as I do, and both of us see our real wealth doubled, we would undeniably both be richer and happier. However, the entirely abstract, purely-on-paper metric "economic inequality" would also double. That, in a nutshell, is why the premise is dubious. If you would argue for sacrificing real-life prosperity in order to prioritize a purely abstract "KPI", you have to prove it.

Margaret Thatcher had the last word on this: https://youtu.be/rv5t6rC6yvg Worth a watch.