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The Democratic Party started out as a combination of Plantation owners influenced by the Enlightenment period of Europe, but the backbone was Rural progressive Farmers who wanted "Internal Improvements" i.e. improve Roads and Schools. The backbone of today's GOP started out as the Federalist Party, a combination of Northern commercial groups and most Southern Plantation owners. The Federalist lost the South and Atlantic States when the Militia embraced the Democratic Movements of the 1790s and finally Lost in New England when the Federalist voted to succeed from the Union over the War of 1812, and then the next day the News Arrived of Jackson's victory at New Orleans AND the signing of a Peace Treaty (The Federalist Party just dissolved over that one two punch).
Jefferson's Democratic-Republican Party, was a merger of his enlightenment AND the Small Farmers of the South and Atlantic States. It ruled the US from 1800-1824 and then dissolved into two groups, first the larger part became the modern Democratic Party with its base in the Small framer. In opposition to the Democratic party the Whig Party was formed made up of people who hatred Jackson but supported by the Commercial Interest of the US, the then new Corporations, and the large Plantation owners of the South (Yes, the membership of the old Federalist party).
While the Whig party was able to win election twice, for it had all the money, it was never a majority party in the US. The Whig Party broke up over Slavery, the Northern Commercial interests switching from being primary shipping prior to 1820 to industry after that date, ended up backing the Anti-Slavery Movement (which formed into the Republican Party). While the Southern Whigs broke off and joined the majority party of the South at that time (The Democratic Party).
At the same time the Democratic Party was also breaking down, but trying to find a peaceful solution to the issue of slavery. In the South the merger into the Democratic Party of the old Whigs made the Democratic party very Conservative for the old Whigs wanted to preserve Slavery at all costs, the old Democrats of the South also backed Slavery for Slavery was an integral part of the Southern Economy (and 60% of all US Exports in 1860 was Cotton, which was picked by Slave Labor).
In the North the Democratic Party broke up into parts that join the Republican party and parts that opposed using force to end Slavery (With the "Middle Roaders" saying force had to be used, but lightly and this opposed the full scale assault on the Southern armies between 1863-1865).
The significance of the period 1860-1865 as far as the parties were concerned, was that for the first time since 1800 the Largest Political Party in the US was NOT the Democratic party, the Republican Party became the Number one party. The Democratic Party was split two ways, the Majority Party in the South, but the opposition party in the North.
Thus in the period 1865-1900 the GOP strength was based on the Commercial Interest of Wall Street and the growing Corporations, Control of most Cities (With the Exception of New York City where the Democratic Party dominated), Rural Northern Voters who voted as their fought, Progressives who wanted to improve America (most left over from the anti-Slavery movement) and blacks (based on the fact Lincoln Freed them from Slavery).
The Democratic Party was dominated by Southern "old Whigs" and Rural Southerns who vote like their Fought, and regional minorities in the North (New York City, Western Pennsylvania and Southern Illinois are three examples). The Democratic party would alternate with the GOP in this period basically do to the fact the Democratic Party believed in a Tariff for Revenue only, while the GOP wanted the highest Tariffs to protect American Industry. The significance of this was when the Democrats had power in the House, Senate or the Presidency, the tariff rates would drop, bringing in more revenue for the Democratic to spend, when the GOP gained one or all of the political Branches, the Tariff went up, revenue drop for the rate discouraged imports and the GOP had to cut expenditures to meet the drop in revenue.
Now this existed till the 1884 election. In 1884 progressive Republicans who had been backing the introduction of Civil Service for 20 years accepted the fact that the GOP was NEVER going to permit Civil Service to be introduced, thus their backed the Democrats in that Election based on the Democrats support for Civil Service (This was more to get votes than any hard belief in Civil Service by the Democrats, but once elected the Democrats did introduced and expand Civil Service).
Anyway, this was the first effort by the Democratic Party to do Governmental economic and Social Reforms since Jackson had introduced the Spoil System in the 1830s. A huge number of Northern Reformers than Joined the Democratic Party pushing further reforms. President Cleveland opposed those reforms, but the cat was out of the bag, the Democratic Party was going to be a Reform party. This was shown in the 1896 Election when for the First (and only time) a Sitting President was unable to control the nomination of his Successor. William Jennings Bryan would lose that year (Out spent 10-1) but still pulled over 45% of the Vote. Bryan advocated Government Assistance to small farmers, reform of Government, inflation to wipe out debts (Thus his support for the "Free Minting of Silver"). In the subsequent election of 1900 he would come out against imperialism and as Wilson's Secretary of State try to get countries to use Arbitration instead of war (and would resign as Secretary of State when Wilson refused to crack down on the banks loaning money to England the France, Bryan said such loans would force the US into WWI, just to prevent the US banks from collapsing).
During this time period the Democratic Party was still the Minority party, most cities were still overwhelming Republican. As the minority party, The Democratic Party had to look for Allies anywhere it could and not offend its base (Primary the South). Thus the reform movements in most Urban Areas were backed by the Democratic Party at this time (Given most cities were GOP dominated, and corrupt, the Phase "Vote Early and often" was made by a REPUBLICAN CITY BOSS, inside dealing etc was commune). The scary part was the Democratic Party would win some City Elections during this period after a especially corrupt Republican Rule, straighten out the City and then the Voters would vote the GOP back in. Much of this was do to the greater amount of money the GOP could collect, even then, in elections, but also it took years for the people to accept the fact the GOP Commercial Interest are hopelessly corrupt and anything they touch is also going to be corrupt.
This was the situation in the 1920s, then the bottom fell out of the Country. FDR won election, had Congress pass legislature that Bryan had advocated from 1896 till his death in 1925 (A Republican of the 1930s called the "New Deal" Bryanism without Bryan). This combination of economic Collapse and GOP Corruption forced a re-alignment of the Parties. For the first time Labor was backing just one of the Political parties (The Democrats), the Cities all started to vote Democratic for only the Democrats were doing anything about solving the problems of the Cities caused by the Great Depression. Even Rural Northern areas voted Democratic, for the GOP had no answer to the Democratic New Deal. FDR insistence that his programs be run honestly and without regard to race started even blacks to vote Democratic.
The GOP did not recover till 1946 (When it won the house) and proceeded to show the American People the GOP had NOT learned anything since 1930 when the Democratic party took the House from the GOP. The people voted in Truman and the Democratic Party in 1948.
To win something, the GOP looked to Eisenhower to save them. He did win election in 1952, but had to deal with Democratic Congresses. The GOP BARELY won in 1952 and that was constant screaming of Communism in the Government and military weakness abroad ("Who Lost China?" Truman and the Democratic was the refrain of the GOP). Even under these conditions most Americans realized that the GOP was Not the better choice to lead the US (and once it was shown that the GOP was NOT doing any better job of chasing the Commies out of Europe, even the red Scared died down).
Now in the 1960s, Nixon saw how the Democratic Party was going. The Democratic party dominated the Cities, but the Suburbs were Republican. Prior to 1920 most people lived in Rural Areas, but after 1920 most Americans lived in Urban Areas. The Democratic Party had been the voice of Reform in Urban areas since the 1880s, including expanding the rights of blacks. At the same time even FDR kept the Southern Whigs happy by not challenging Segregation. This conflict could not be avoided forever (Even JFK tried to avoid the dispute when he could, for example calling the Southern National Guard in Federal service so Southern Racist Governors could not use them to suppress black protests, but JFK was more worried about how the protests were being handled by the Southern Segregationist as opposed to solving the problems of Civil rights).
On the other hand, LBJ saw that the problem of Race had to be resolved, even if that meant weakening the Democratic Party. LBJ forced through the Civil Rights Act of 1964 knowing ti would cost the Democratic party lost of the old Southern Whigs to the GOP (These Southern Whigs had always been more in line with the GOP, but could not join the GOP do to the Civil war, but such people would oppose any political party that helped the blacks).
Anyway, the Democratic Party survived the slow defections of Southern Conservative Democrats, but only for a while. In 1980, with the election of Reagan, the GOP controlled the Senate for the First time since Eisenhower, but also had de factor control of the House (They were enough Conservative Democrats to win votes for Reagan even through technically the House was still contained more Democrats than Republicans). This continued throughout the 1980s with only a brief respite with Clinton's elections in 1992. In the Election of 1994 the Shift of the South to GOP control was complete and the GOP took control over both houses.
Now, during the 1960s-1980s the GOP crowed every time any Democrat, even as the State or local level, switch to the GOP. This was almost always in the South. Thus the 1994 GOP victory was not only a result of the South going GOP, but the GOP's ability to retain Northern Republicans. The problem for the GOP is they are losing control of such Northern Republicans. Today is much like the 1960s but in reverse. In the 1960s the Democratic Party was the Majority Party, but that majority was based, in part, on a group (Southern Conservative Democrats) whose thinking was more in line with the Opposition Party then their own party. The same is going now, Northern Republicans have more in common with Democrats than the rest of the GOP. This is especially true in the Rural areas where except for Guns and Gays, the Rural northern Voter want Government Spending increases, taxes on high income people increased, and want improved heath care. These people are slowly switching, like the southern whites who slowly switch from the 1960s-1990s.
We are looking at an upcoming era, where the Democratic Party Strengths is going to be a combination of Rural Northern America and the Central Cities (including Blacks and Liberals and the older, pre and post WWII Suburbs). The GOP will control the South and the Suburbs (Mostly the newer suburbs, post 1980) and as always Wall street and the Corporations.
In many ways we are returning to the situation prior to the Civil war, except in an urban dominated society as opposed to an Rural dominated Society (and with Blacks given the right to vote). In many ways the GOP understand this and this is why the GOP opposed real election reforms (For the GOP needs to cheat to win) and why the GOP wants Voter picture IDs, to suppress votes of poor people who live in Rural areas in addition to Central Cities (But not in the newer Suburbs).
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