i've heard the quote in many slightly different versions - aside from this, i have mixed feelings about it.
i wrote my undergraduate dissertation on the causal relationship between income inequality and economic growth, drawing on a large literature that reaches conflicting conclusions (some say inequality is bad because it curtails people's opportunities, some say it's good because it incites accumulation and therefore investment).
i wanted to understand what was the truth concerning inequality, whether there was a real reason to deem it bad or not. i kept on studying this matter during my ph. d. years and now i'm also turning to poverty analysis. and you know what? i still have no clue.
the ultra-conservative argument brought up by the likes of martin feldstein goes like this: people are born with different skills, and they subsequently decide with different measures of willpower what to do with these skills, so inequality is a fact of human nature, and of course it's reflected in income distributions. face it, embrace it, and forget about it. no matter how hard i honestly tried to see the other side in several years of research on the matter, i still can't deny that there is more than a grain of truth in points such as this. still, if i see homeless people on the street i feel sorry for them. so, as i said: mixed feelings.
moreover, even if i was totally convinced that inequality is bad and must be eradicated for the common good (a concept i'm very suspicious about all the time, but let's pretend i'm not), trying to do that would imply very high personal costs. i will just give you an example from a very realistic perspective: let's say that i keep on writing journal articles about inequality and poverty, and let's say that sooner or later i get to sit on a governmental commission for designing policies aimed at helping the unfortunate. this is not sci-fi, there's people at my workplace who are in the same line of research and eventually this is what they ended up doing. and guess what? in order to subsidize the poor, you need to take money from the rich and the middle class. this is all well and good if you assume that an equal society is desirable. but, on a personal level, i would not be able to sponsor massive redistribution: after all, after 20-odd years of schooling, leaving friends and family behind to get a good job, and jeopardizing serenity and health in order to have a career i am not inclined to fund some high-school dropout who thought life was a lot easier than it actually is. so, would i be effective as a social policymaker? not really, because i don't even believe in the concept of social assistance. those of you who have jobs, especially if you've worked very hard to get them, will find that after all i'm not rambling (be honest): redistribution is based on the idea that those who have more than others must be forced by the state to give something back to society. are you ready to do that? i don't really think so, and that's because the idea is basically unfair. i'm all in favor of private charities and benefiting the destitute because you want it, but i will never think that it's a responsibility of the state. take money away from the people who earn it, and you're just ending up with an unmotivated ruling class - not by a long shot a good idea.