4. The Welfare State (i) Suffering for productivity, or egalitarian well-being for less (or little ) produc- tivity: a false choice (ii) Taxes and redistribution = incentive remains, suffering reduced (iii) The 'real utilitarian solution? (i) Incentives even if some earnings are not retained and or if some needs are provided (iv) Equality/inequality and the 'Difference Principle' (i) Some situations of the difference principle in action (proof that both socialists and capitalists are wrong) (v) A pragmatic approach to setting minimum and maximum limits (vi) The Utilitarian Justification Reconsidered; Or, twotypes of utilitarian calcu- lation 5. The Utilitarian Justification Reconsidered; Or, twotypes of utilitarian calculation