With Elon Musk recently declaring his intention to form a new political party in the US, where the Republican and Democrat parties have held sway for more than two centuries, many are wondering whether a third party can indeed break this duopoly.
While it's feasible to create a new political party in the US, the system makes it difficult for a new party other than the Democrats or Republicans to gain national influence. But what exactly makes the US a two-party nation?
How to form a new political party in the US
The first step is to establish a formal organisation when it comes to forming a new political party in the US. Usually, it begins with incorporating under state law, as the US is run under a federal system.
Next, the party must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which is essential for handling taxes and financial transactions.
With these basics in place, the party must open a dedicated bank account to ensure that all financial activity is transparent and in compliance with legal requirements.
The organisation also needs to appoint key officers, including a treasurer responsible for managing funds and keeping detailed financial records.
It's important to remember that there is no federal law that directly governs the formation of a political party. Instead, the party is primarily governed by state laws for its creation and incorporation.
However, federal laws come into effect when the party raises or spends money in connection with federal elections, such as supporting candidates for the president, Senate, or the House of Representatives.
Under the Federal Election Campaign Act (FECA), if the party raises or spends more than $1,000 in connection with federal elections (or $5,000 for local committees), it must register with the Federal Election Commission (FEC) by filing a Statement of Organisation (FEC Form 1).
To put this simply for someone unfamiliar with the US system: imagine you want to start a political party in a country where local governments mostly control how parties are formed. You register your party with your local government first (like incorporating under state law).
But as soon as you start spending money to influence national elections, you have to register with a national election authority that monitors political funding and spending to make sure everything is transparent and fair. In the context of the US, that national authority is the FEC.
Why the US system favours two major parties
Though it's possible to form a new political party in the US, its political system remains dominated by two major parties: the Democratic Party and the Republican Party.
To understand this, we need to focus on the country's electoral system. It is called "winner-take-all," where the candidate who wins the most votes in an election takes the entire seat or office. This leaves no representation for the losing side.
In contrast, many other democracies use proportional representation, which allows smaller parties to thrive in the assembly. In the US, the structure of elections creates a strong incentive for voters to align with one of the two main parties so as not to "waste" their votes.
Other factors also reinforce this two-party system. Strict ballot access laws make it challenging for third parties to even appear on ballots in many states. For example, in Oklahoma, new parties must gather signatures equal to 3% of the votes cast in the last gubernatorial election just to qualify.
Over the years, both the Democratic and Republican parties have engaged with new movements and shifted their platforms to maintain relevance. Historically, both parties have at various times embraced labour movements, civil rights, and other populist issues.
There have been presidents from other parties in the nation's early history, such as the Federalists, Democratic-Republicans, National Republicans, and Whigs, but since Abraham Lincoln's election in 1860, every US president has been either from the Democratic or Republican parties.
Occasionally, third-party or independent candidates have made significant impacts, such as Theodore Roosevelt's 1912 Progressive Party (Bull Moose) run or Ross Perot's independent campaigns in the 1990s. However, none have broken through to win the presidency under the current system.
The Civil War's impact on American politics
The American Civil War (1861–1865) played a crucial role in shaping today's party system. Back then, led by Abraham Lincoln, the newly formed Republican Party opposed the expansion of slavery. On the contrary, the South's dominant Democratic party defended the institution of slavery.
This war not only reshaped the nation's ideology but also defined the identities of both parties for decades to come. During the American Civil War, Lincoln's Union government introduced the first-ever military draft in 1863 through the Enrollment Act. This draft, along with its controversial $300 exemption fee, allowed wealthier men to avoid joining the service. This sparked public outrage and fuelled class tensions, particularly among working-class Democrats.
This period showed that economic inequality and political loyalty are often connected, a pattern that is still relevant in American politics.
Interestingly, by the mid-20th century, the Democratic Party had begun shifting toward supporting civil rights and social justice. Leaders such as Harry Truman, John F. Kennedy, and Lyndon B. Johnson championed key legislation such as the Civil Rights Act of 1964 and the Voting Rights Act of 1965.
This shift alienated many white conservatives, who had traditionally backed the Democrats since the Civil War.
Over time, these voters started leaning toward the Republican Party, which emphasises states' rights, law and order, and traditional values.
Although the US has seen the rise of several influential third parties. Theodore Roosevelt's Progressive Party in 1912 and Ross Perot's independent campaigns in the 1990s, but no third party has succeeded in winning the presidency since Abraham Lincoln's Republican victory in 1860.
It is entirely possible to form a new political party in the US, as Elon Musk's recent announcement suggests. But the combination of electoral rules, historical patterns, and institutional advantages has kept American politics firmly rooted in a two-party system. Anyone hoping to start a new party needs to understand that this reality is the first step to challenging the current political order.
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