Found this little piece written back in the 70's interesting.
10. Two-Party System
There is no other way of explaining the phenomenon. Good men do find their way into government. But having gotten there, they must either perform their function or resign. If they perform their function, they use the government, an agency of compulsively gathered coercive force, to accomplish that function. Inevitably, they hurt someone. This is undoubtedly the reason such a furore is maintained over the necessity for a two-party system. Nothing is said in the Constitution or the Bill of Rights about the necessity of a two-party system. Yet most Americans hold that two parties are necessary.
The reason is obvious. The party in power inevitably employs its friends and well-wishers, and passes laws and enforces proceedings against others not of the same political conviction.
Over a period of time these laws and enforcements build up a body of resistance. The oppression mounts. It may become a public scandal. Finally, the "ins" are ousted and the other party assumes power.
Immediately the process repeats but with alternate emphasis. Those who are "ins" become "outs." And the newly hired "ins" go to work to cut their friends free from oppression and to visit their vengeance upon those who subscribed to the beliefs of the former "ins." Then the same iniquities come to pass all over again. Those persecuted change places with the persecutors. And around and around goes the political wheel of chance, with the voting public spinning the wheel.
In our own time we have seen one curious variance occurring to this otherwise monotonous and easily predictable routine. The "ins" and the "outs" have performed a merger. The party in power has now scarcely a discernible difference from the party out of power. And the reason for this merger is self-evident. The government has in itself grown so large and so formidable that it tends to absorb any and all politically interested persons, regardless of party affiliation. And since, in the main, there is no real difference in political parties, each party desiring only to rule — each party adopts an advertising program consisting of those public statements which each party leader feels will win an election — the merger is that of blood brothers and constitutes no betrayal.
http://www.mises.org/story/1970#10
Oh geez, I forgot again to check with the dress coordinator to make sure I'm not in violation!