ABSTRACT
Capitalism is a fundamental system of economic and political thought, and the ideological foundation of American capitalism provides a more compelling explanation for the development of American welfare policies than does the economics of capitalism. Welfare policy in America has been forged to fit within the constraints of the economics and ideology of capitalism, just as the character of welfare policy fits within the framework of a liberal ideology from which American government itself has developed. The postcolonial foundation of capitalism embedded in Protestant ethics anchored individual economic life in America. Microeconomics, as personal economics is often called, retains its authority as the foundation of American economics to the present day. The microeconomics of capitalism suggests that capitalism is an individually driven series of rational economic choices without much grounding in ethical considerations. The development of macroeconomics is a result of the continuing attempt to set rules that will protect American capitalism and establish its growth.
