This paper constructs, within the American liberal consensus, a conceptual frame into which the great paradoxes of American politics can be fitted without significant omission or unexplained contradiction. The foundation of the American liberal consensus is seen to be a Protestant-bourgeois individualism divided against itself. This fundamental division issues into conflicting visions of America as a democracy. In national, legitimizing myth, America is seen as a Protestant-tinctured social democracy organized in terms of sovereignty of the people, confederalism, separation of powers, and popular government. On the other hand, in the ideology of America as a legally functioning state, it is a bourgeois, liberal democracy organized in terms of constitutionalism, federalism, mixed government, and representative government. These distinctions make possible a consistent explanation of the consensus-cleavage paradox that lies at the core of American political life. They also explain the persistent ambiguity that confuses the democratic character of the American political system and also the biformalism of its major institutions.