The roots of the two-party system can be found in the debates between the Federalists and the Anti-Federalists during the early years of the United States. The Federalists, led by Alexander Hamilton, advocated for a strong central government and close ties with Britain, while the Anti-Federalists, including Thomas Jefferson, favored states' rights and a more agrarian society.

These fundamental differences in ideology and governance led to the formation of the first political parties in the United States, setting the stage for the development of the two-party system. Over time, the Federalists evolved into the modern-day Democratic Party, while the Anti-Federalists became the Republican Party.