If I may be a politicizing dick, severe inequality means that seemingly small failures or successes can have massive, oversized influence on the course of someone's life, and also means that we socialize people, from youth, to take each possible failure or success that much more seriously, as that much more determining of their overall life course and meaning in the world.
It runs directly contrary to imbuing resilience in people, and in society.
Anxiety disorders and suicides are the price of having a society and a world in which increasingly many people have everything on the line, at every step, all the time.