Two-party system
A two-party system is a party system where two major political parties dominate the government. One of the two parties typically holds a majority in the legislature and is usually referred to as the "majority" or "governing party" while the other is the "minority" or "opposition party". Around the world, the term has different senses. For example, in the United States, Jamaica, and Malta, the sense of "two-party system" describes an arrangement in which all or nearly all elected officials belong to one of the only two major parties, and third parties rarely win any seats in the legislature. In such arrangements, two-party systems are thought to result from various factors like winner-takes-all election rules. In such systems, while chances for third-party candidates winning election to major national office are remote, it is possible for groups within the larger parties, or in opposition to one or both of them, to exert influence on the two major parties. In contrast, in the United Kingdom and Australia and in other parliamentary systems and elsewhere, the term "two-party system" is sometimes used to indicate an arrangement in which two major parties dominate elections but in which there are viable third parties which do win seats in the legislature, and in which the two major parties exert proportionately greater influence than their percentage of votes would suggest.
Party system
First Party System: This system can be considered to have developed as a result of the factions in the George Washington administration. The two factions were Alexander Hamilton and the Federalists and Thomas Jefferson and the Democratic-Republican Party. The Federalists argued for a strong national government with a national bank and a strong economic and industry system. The Democratic-Republicans argued for a limited government, with a greater emphasis on farmers and states' rights. After the 1800 Presidential election, the Democratic-Republicans gained major dominance for the next twenty years, and the Federalists slowly died off.