And yes, this means that inequality is bad in and of itself.
What the difference is is clearly outlined in the report I previously posted:
"It is abundantly clear that the chronic stress of struggling with material disadvantage is intensified to a very considerable degree by doing so in more unequal societies. An extensive body of research confirms the relationship between inequality and poorer outcomes, a relationship which is evident at every position on the social hierarchy and is not confined to developed nations. "
"Mental health, resilience and inequalities Box 9: Poverty and powerlessness It is evident that the consequences of an individualized view of poverty can often be devastating.... The sheer lack of respect and understanding given to the disadvantaged in Britain is highly corrosive of wellbeing, and all the more so because it is constant and overwhelming. We have had welfare recipients tell us how every interaction they have with the official welfare world is negative: no one has a good word to say to them; they spend hours shuttling between agencies in grimy offices that reinforce their powerlessness. Their time is of no account because they are considered to be of no account. Jones et al 2006 p. 439"
And finally:
"Economic analysis based on WHO data on the global burden of disease (see Box 4) suggests that of the total health burden, just under half is attributable to premature mortality and just over half to non- fatal outcomes (morbidity and disability). Mental illness, including suicide, accounts for less than 5% of all premature mortality but for over 30% of all morbidity and disability. No other health condition (apart from cardiovascular disease) accounts for more than 10% of the total burden of disease within the population (WHO 2005; 2006)"
These are the mental, and apparently also physical, problems I'm talking about. And they are the result of inequality, be it perceived or real.
As for your example, you seem to want me to agree with you that you should 'prevent her from sleeping with someone else'. Which would be a morally apprehensible thing to do.
I'll stop you right there, in no way is your sexual life in any way comparable to the way poverty impacts the mental wellbeing of people. I'd call what you sketch in your example envy. But that is not what these people are suffering from.
As for your idea of residential segregation, this seems to be another try to 'hide' the inequality. You're still attacking the perception instead of the real problem. I restate that you can't hide the inequality in our society. Say you do separate (forcibly?) all poor people from the rest. How do you stop them from seeing the people on TV? Radio? On the street, where they work?
Even if you somehow work it so that there's absolutely no contact between the former poor people and the rest of society, you've only succeeded in sawing of 1 rung from the ladder. Will you do the same with the new 'bottom rung'? As outlined in the rapport and by me, the issue is not wealth in absolute, it's the perceived gap in wealth between you and your peers, the people you see on tv that are no different from you except they got wealth and you don't.
If inequality were bad in and of itself, then you wouldn't need to refer to Mind State X to explain why it is bad.
I.e., suppose inequality doesn't cause Mind State X. Do you still care? If so, why?
I'll stop you right there, in no way is your sexual life in any way comparable to the way poverty impacts the mental wellbeing of people.
Suppose, hypothetically, I dig into the psychology literature and discover that the distribution of sexual partners causes Mind State Y which is just as bad as Mind State X. Would that make restricting the actions of others moral?
More concretely: what specific psychological properties determine that Mind State X justifies restricting the actions of others, but not Mind State Y? And if I could dig into the psychology literature and show that Mind State Y satisfied those properties, would you change your opinion?
I also postulate that you aren't really recognizing how devastating Mind State Y can be. Your Box 9 quote describes quite accurately my impression of the lives of less attractive men. Feel free to browse various "manosphere" subreddits (e.g. "red pill", seduction) to read many examples of this.
If you'd rather use the a different term to avoid inspiring negative feelings about me, feel free to suggest one. For the remainder of this post I'll use the term "Mind State X" to describe an unpleasant mental state resulting from the observation that other people possess qualities that you wish you had.
If we cannot change how humans react to inequality: we get jealous, get sick, turn criminal or exhibit other negative traits. Then we should instead change our society to address the real issue: the inequality itself, and not just it's perception. Now doing that would be a whole other barrel of fish obviously.
I'm confused. Is inequality intrinsically bad? If so, then Mind State X is irrelevant, and you should be able to make that argument without it. If Mind State X is the thing that is bad, then inequality is irrelevant if it does not cause Mind State X.
Lets also generalize this discussion of Mind State X. Many non-money related things cause Mind State X - I'm tall and good looking, some people are short and ugly. I have sex with many women, some people are involuntarily celibate. I'm somewhat skinny, other people are far more muscular than me. These things can also cause Mind State X.
For example, a woman I used to sleep with is now sleeping with someone who is much stronger and more muscular than me. I feel Mind State X as a result. I believe the solution is that she shouldn't inform me of this. You believe the solution would be for her to be prevented from doing this, I take it?
On to practical matters: Everything around them lets them know they're at the lowest rung of a very large ladder to the socio-economic top.
Residential segregation and targeted advertising would seem to be a great way to address this. Luckily the world is moving in that direction anyway.