Cities drive economic growth and raise average incomes, but they do not eliminate inequality. In fact, they often harbor both tolerable and intolerable inequality. The increasing proximity between rich and poor groups in cities can make existing inequality increasingly painful. A major issue is income segregation, which limits social mobility and reduces integration across neighborhoods. This is exacerbated by factors like gentrification, gerrymandering, and the Tiebout effect, all of which underscore the influence of local policies in deepening inequality. Additionally, psychological effects emerge: children in disadvantaged areas may internalize low expectations due to a lack of role models, peer influence, and a limited perceived value of education, reinforcing the cycle of poverty and intolerable inequality.