Can Democratic Equality Justify Capitalism?

Jeppe von Platz has recently argued that welfare-state capitalism can be justified by a theory of democratic equality, challenging John Rawls’s critique of capitalism. Von Platz develops his argument by introducing a social democratic interpretation of democratic equality as an alternative to Rawls’s justice as fairness. Unlike justice as fairness, in which there is only one possible principle of reciprocity (the difference principle), social democracy includes four possible principles in an eligible set that could be chosen as a principle of reciprocity. However, I argue that von Platz’s conception of reciprocity still fails to justify welfare-state capitalism. Of the four principles of reciprocity in social democracy’s eligible set, one of them, the principle of utility, does not express a notion of reciprocity and thus does not belong. The other three – the principle of equality, the difference principle, and the principle of equity – are not compatible with welfare-state capitalism. Thus, since capitalism cannot satisfy a principle of reciprocity in the (revised) eligible set, it is incompatible with the social democratic interpretation of democratic equality.