The Rawlsian institutional approach holds that distributive principles apply to socioeconomic institutions rather than transactions within the institutional framework. Critics claim that the approach is baseless. I defend Rawls’s institutionalism by showing that it has a rational basis: Rawls “constructs” a theory of justice from considered judgments, especially ideas found in the political culture and historical conditions of democracy, including the fact of reasonable pluralism, which supports his institutionalism. I use Rawls’s “fact-sensitive constructivism” to interpret his claim that “utilitarianism does (...) not take seriously the distinction between persons.” Rawls’s claim refers to his contrast between impartial spectator reasoning for the classical principle of utility and his original position, which aims to motivate the original position’s use of mutually disinterested parties to an agreement as more accurately reflecting democracy’s fact of reasonable pluralism. Rawls then shows that these original position conditions, meant to reflect separate persons in democracy, justify his egalitarian principles over classical utility. I extend his contrast to act-egalitarianism to show that Rawls’s fact-sensitive constructivism supports his institutionalism. I argue that the original position, which reflects separate persons, only justifies the institutional difference principle and that the natural reasoning for act-egalitarianism does not take seriously the separateness of persons. (shrink)