The objective of this paper is to examine the reasons why John Rawls considers his conception of justice as fairness incompatible with the capitalist welfare state model, despite the repeated comparisons and apparent similarities between the two. In contrast, Rawls proposes a property-owning democracy as the socio-economic regime. Firstly, a brief review is provided of the historical, political, and philosophical framework within which this debate is situated. Next, the arguments are presented and developed to demonstrate the limitations of the capitalist welfare state in ensuring democratic equality and reciprocity.