Question

Explain how a "leaky bucket" can be used to illustrate the utilitarian argument that governments should not attempt to completely equalize individual incomes.

Answer 1

The leaky bucket theory is the model that seeks to describe the process of customer gain and loss, otherwise known as customer churn. Most companies concentrate on recruiting new customers to replace customers who move on, rather than seeking to retain customers.

This principle promotes the elements of capitalism, under which people increase their wealth to obtain more wealth by collecting money personally. In addition to this, plans can be made for the welfare of the people from the lower classes by collecting the tax received from the people in which the government has an important role.

We can say that this principle promotes people to innovate and leads them to earn more and more money. So that it is good for them as well as the welfare programs can be carried forward with the money taken from them.

Thus this principle says that the government should not try to bring equality as a whole. Because equality as a whole would mean that people who are different will lack the ability to work or to collect money by working individually. Due to which a large section will be converted into poverty or lower class which will not only harm the economy but also the people and the government will have to face many problems.