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An unprecedented number of Americans are being held in prison as punishment. This thesis outlines the political and psychological effects of incarceration in relation to John Rawls’ theory of justice: one of the most pervasive political theories of the past 60 years. First, I test the statistically-supported consequences of incarceration on the economic wellbeing of individuals most directly impacted by incarceration against Rawls’ principles of justice to determine if incarceration is politically just. Next, guided by the writings of alienation philosopher Axel Honneth, I expand upon Rawls’ references to mental states to uncover psychological criteria for Rawlsean justice. Finally, I test incarceration against this criteria. I find that the American criminal justice system fails to provide a suitable bare-minimum amount of economic and psychological justice for all citizens due to punitive incarceration, no matter one’s proximity to incarceration. Incarceration, thus, is a barrier to America becoming a well-ordered society.