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The American party system developed through a combination of ideological divisions, historical events, and political conflicts. Initially, the Federalists and Anti-Federalists emerged in the late 18th century over issues like federal power and individual rights, giving rise to the first political parties. Over time, these factions evolved into more defined parties, such as the Democratic-Republicans and later the Democrats and Whigs, shaped by issues like slavery, economic policy, and civil rights. The system has continued to evolve, leading to the current dominance of the two-party system, primarily the Democratic and Republican parties.

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