What are good counter arguments to the idea that a higher Gini coefficient is bad?

[chirag-garg]

If I was pressed to argue that increasing the amount of income inequality is “good” for an economy then I would borrow that argument put forth by many of the fans of Ayn Rand: It increases the incentive to accumulate (which, in turn, increases the production of wealth); by increasing the rewards to economic activity, the economy benefits.

Of course, that argument fails (for a number of reasons) but, most obviously, fails because increasing income inequality decreases incentives because fewer people will assess their probability of “success” favourably.

And I can’t think of any other “pro inequality” arguments