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If a new tax system encouraged more output but also created greater inequality, would it be...

If a new tax system encouraged more output but also created greater inequality, would it be desirable?

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is not desirable and this is because of the fact that ultimately a country main goal is to increase the economic development and not economic growth where economic growth is only concerned with GDPeconomic development is increasing the standards of living of every individual and decreasing the poverty level of the country and economic development only involves the reduction of economic inequality between the people.

If this new tax system can increase the output but it increases the inequality what happens is that the poverty levels in the country can increase as a result of which the net welfare to the society decreases and that is the reason why it is something not desirable on the whole.

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