Simon Kuznets' hypothesis has been refuted again and again by economists, no matter what side of the political spectrum you fall on. The idea that capitalism actually shrinks income inequality completely contradicts everything we know about how the system itself functions. Within the article referenced, there are several key indicators that the shrinking of inequality in those countries is due to governmental intervention and wealth distribution, not the effects of the free market on society. Without some level of checks and balances, there is no end to the level of inequality that could result from an entirely free market that does whatever it pleases. It has been proven time and time again that the more capitalist a country is, the more income inequality exists within that country.