[krapht]

It's a complicated subject. I think you're too quick to dismiss income redistribution based on the happiness levels of the envious: this is a fundamental part of human nature. Just as we exploit human greed in our capitalistic society, so too we must mollify human envy so there aren't riots in the street. Uncontrolled wealth inequality leads to a breakdown in the egalitarian ideal (or fiction, if you are more cynical) we have of our Western society. Insofar as wealth represents power and influence, this was a topic of concern even to the Founding Fathers.

Status seeking is something you see in all animals, not just humans, and we shouldn't deny the effects of it on happiness. Trying to make social policy without considering it is ignoring a valuable piece of information.

I make no comment on the effectiveness of the US' current social safety net and income redistribution policies. Just that there is a principled argument for having them.