They believed it hindered social mobility, in that it prevented the rise of the most dynamic individuals in the society, and that it weakened economic incentives for an efficient use of labour, land and machinery.1 They also saw it as generating excessive consumption by the upper classes, contrasting with the precarious conditions of the popular masses. In their view, income inequality does not translate into stronger capital accumulation, as ostentatious consumption by the rich reduces savings. Consequently, State-led redistribution policies must seek to reduce consumption by the upper income groups in order to increase savings and direct them to capital accumulation (Prebisch, 1963; Pinto, 1970).