Income inequality is portrayed by many authors as a negative for economic growth and for the welfare of a country. It is not one of the features that any nation would wish to achieve in its economy for attainment of any goal. It is used can be used by economies positively but in a free economy income and wealthy inequality is unpleasant.Some authors argue that inequality in income may lead to increased savings and increased investments as a result. The poor have e a high MPC and therefore marginal increase in income to the poor equal marginal increase to their spending unlike the wealthy that will save and invest. Arguing from this perspective income inequality is expected to yield economic growth to a country.Inequalities in income and wealth makes the poor people live in extreme poor conditions while those possessing the national resources live lavish lives both in the same country. The unequal distribution between the poor and the rich trigger the illegal activities to acquire property from the rich. It results to theft if not becoming beggars. This is therefore a threat to nation’s security when the rich are not safe from the poor who become criminals.Unequal distribution of income inhibits demand for the produced goods. The marginal propensity to consume is relatively low among the top income earners compared to people of limited means. When the marginal income to a country goes to those who are already rich at the expense of the poor, there is little additional demand. This may even result to inflation when the nation’s increased income is not matched with increased demand for the products within the economy.