The society will be better off when a unit of income is transferred from a richer individual to a poorer individual. This is the Dalton’s principle of transfer for income redistribution. You can read about the Kuznets Curve – Explanation of the Kuznets curve, its Criticisms in the given link.
The unidimensional Pigou–Dalton transfer principle demands that a regressive transfer in income, i.e. a transfer from poor individuals to rich individuals decreases social welfare.
- Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes]
- Indian Economy Notes For UPSC Exam [Download PDFs]
Fiscal Policy in India – Objectives, Components, Fiscal Consolidation, FRBM Act, 2003