--Hamilton vs Jefferson
Jefferson: Democratic Republicans (suspicious of centralised gov.)
Hamilton: Federalists (believed in strong national gov.)
--Split of Democratic Republicans
The Whigs and Democrats were the two major parties up until 1850s.
--The Two Party System today
The Whigs and ex Democrats formed the Republican party over the opposed spread of slavery. Remaining Whigs faded leaving the Democrats and the Republicans in the system.
--Third Parties
Not likely to win any major elections. Usually promote single issues.
HOWEVER the Progressive Party became popular in the late 1800s. Roosevelt split from the Republicans to form the PP. It split the 1912 Republican vote allowing the Democrat to win. Although they never suceeded in getting a candidate into national office, many of their ideas on workers rights became laws in the 20th Century.
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