To an extent quite extraordinary in democratic countries, the American political system is dominated by two political parties: the Democratic Party and the Republican Party (often known as the “Grand Old Party” or GOP). These are very old and very stable parties – the Democrats go back to the 1824 and the Republicans were founded in 1854. The Democratic Party is sometimes represented as a donkey, while the Republican Party is sometimes featured as an elephant.
The main reason for the dominance of these two parties is that – like most other Anglo-Saxon countries (notably Britain) – the electoral system is “first past the post” or simple majority which, combined with the large voter size of the constituencies in the House and (even more) the Senate, ensures that effectively only two parties can play. The other key factor is the huge influence of money in the American electoral system. Since effectively a candidate can spend any amount he can raise (not allowed in many other countries) and since one can buy broadcasting time (again not allowed in many countries), the US can only “afford” two parties or, to put it another way, candidates of any other party face a formidable financial barrier to entry.
The Democrats have favored “liberal” positions (the term “liberal” in this sense describes social liberalism, not classical liberalism). Historically, the party has favored farmers, laborers, labor unions, and religious and ethnic minorities; it has opposed unregulated business and finance, and favored progressive income taxes. In foreign policy, internationalism (including interventionism) was a dominant theme from 1913 to the mid-1960s. In the 1930s, the party began advocating welfare spending programs targeted at the poor. The party had a pro-business wing, typified by Al Smith, and a Southern conservative wing that shrank after President Lyndon B. Johnson supported the Civil Rights Act of 1964. The major influences for liberalism were labor unions (which peaked in the 1936–1952 era), and the African American wing, which has steadily grown since the 1960s. Since the 1970s, environmentalism has been a major new component.
In recent decades, the party has adopted a centrist economic and more socially progressive agenda, with the voter base having shifted considerably. Once dominated by unionized labor and the working class, the Democratic base currently consists of a large number of well-educated and relatively affluent liberals as well as those in the socially more conservative working class. Today, Democrats advocate more social freedoms, affirmative action, balanced budget, and a free enterprise system tempered by government intervention (mixed economy). The economic policy adopted by the modern Democratic Party, including the former Clinton administration, may also be referred to as the “Third Way”. The party believes that government should play a role in alleviating poverty and social injustice, even if such requires a larger role for government and progressive taxation.
The Democratic Party, once dominant in the Southeastern United States, is now strongest in the Northeast (Mid-Atlantic and New England), Great Lakes region, and the Pacific Coast (including Hawaii). The Democrats are also strongest in major cities.
The Republicans emphasize the role of free market decision making in fostering economic prosperity. They support the idea of individuals being economically responsible for their own actions and decisions. Most Republicans agree there should be a “safety net” to assist the less fortunate; however, they tend to believe the private sector is more effective in helping the poor than government is; as a result, Republicans support giving government grants to faith-based and other private charitable organizations to supplant welfare spending.
Some Republicans are skeptical of anthropogenic global warming and question scientific studies on the impact of human activity on climate change, instead asserting that global warming is part of “natural” cyclical phenomenon, or caused by a number of other alternative theories.
The 2004 Republican platform expressed support for the Federal Marriage Amendment to the United States Constitution to define marriage as exclusively between one man and one woman. A majority of the GOP's national and state candidates are pro-life and oppose abortion on religious or moral grounds, and favor faith-based initiatives.
The Republican Party has always advocated a strong national defense; however, up until recently they tended to disapprove of interventionist foreign policy actions. Today, the Republican Party supports unilateralism in issues of national security, believing in the ability and right of the United States to act without external or international support in its own self-interest. Republicans secured gains in the 2002 and 2004 elections with the "War on Terrorism" being one of the top issues favoring them. Since the September 11, 2001 attacks, the party supports neoconservative policies with regard to the "War on Terror", including the 2001 war in Afghanistan and the 2003 invasion of Iraq.