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[[File:Burke.jpeg|thumb|left|250px|Figure 2. Edmund Burke philosophically shaped what became the concept behind modern political parties in democratic states.]]

In the United States, similar disputes over the nature and power of leadership led to the eventual emergence of parties. The debate as to how much power the federal government should have relative to state rights became the core issue that led to the emergence of the two-party system in the United States. The Federalists Party, led by Alexander Hamilton, emerged as the first political party in the United States at around 1789, which championed the idea of strong federal government with power over the states and investment and development of manufacturing and trade. This included developing a central bank for the United States.

The Democratic-Republican Party soon emerged as its opposition in 1792, although they were usually called the Republican Party (historians though use Democratic-Republican to distinguish from modern Republicans), with the party led by Thomas Jefferson. As the name suggests, their main ideas were Republicanism that opposed a strong, central federalists policy. The party opposed Hamilton's financial support for a healthy, Central Bank of the United States. Its support for state rights became perhaps the most well-known platform, which also became the main issue that eventually sparked the Civil War. The Federalists only lasted until about 1824, while the Democratic-Republican party dissolved in 1825.

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