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I don't harbor much love for Caplan nor do I agree a great deal with his proposals (and e.g. his debate with Scott wrt the economic incentive model of mental illnesses was... asinine). It is not clear how he resolves this issue. Probably he accepts the fundamental premise of increasing utility, particularly in the narrow sense of multiplying total material/financial wealth, the domain where this framework is most applicable; but as a libertarian (and not-wholly-insane-person) he balks at the generalized conclusion where even intentional murder becomes justified.

Alternatively, he may disapprove of Singer's remarkable openness on this topic.