During Jackson's second term, his opponents had gradually come together to form the Whig Party. Whigs and Democrats held different attitudes toward the changes brought about by the market, banks, and commerce. The Democrats tended to view society as a continuing conflict between "the people"-farmers, planters, and workers-and a set of greedy aristocrats. This "paper money aristocracy" of bankers and investors manipulated the banking system for their own profit, Democrats claimed, and sapped the nation's vir­tue by encouraging speculation and the desire for sudden, unearned wealth. The Demo­crats wanted the rewards of the market without sacrificing the features of a simple agrarian republic. They wanted the wealth that the market offered without the competitive, chang­ing society; the complex dealing; the dominance of urban centers; and the loss of indepen­dence that came with it.

 
Whigs, on the other hand, were more comfortable with the market. For them, com­merce and economic development were agents of civilization. Nor did the Whigs envision any conflict in society between farmers and workers on the one hand and businesspeople and bankers on the other. Economic growth would benefit everyone by raising national income and expanding opportunity. The government's responsibility was to provide a well­-regulated economy that guaranteed opportunity for citizens of ability.
Whigs and Democrats differed not only in their attitudes toward the market but also about how active the central government should be in people's lives. Despite Andrew Jackson's inclination to be a strong president, Democrats as a rule believed in limited gov­ernment. Government's role in the economy was to promote competition by destroying monopolies 1 and special privileges. In keeping with this philosophy of limited government, Democrats also rejected the idea that moral beliefs were the proper sphere of government action. Religion and politics, they believed, should be kept clearly separate, and they gener­ally opposed humanitarian legislation.

 
The Whigs, in contrast, viewed government power positively. They believed that it should be used to protect individual rights and public liberty, and that it had a special role where individual effort was ineffective. By regulating the economy and competition, the government could ensure equal opportunity. Indeed, for Whigs the concept of government promoting the general welfare went beyond the economy. In particular, Whigs in the north­ern sections of the United States also believed that government power should be used to foster the moral welfare of the country. They were much more likely to favor social-reform legislation and aid to education.

In some ways the social makeup of the two parties was similar. To be competitive in winning votes, Whigs and Democrats both had to have significant support among farmers, the largest group in society, and workers. Neither party could win an election by appealing exclusively to the rich or the poor. The Whigs, however, enjoyed disproportionate strength among the business and commercial classes. Whigs appealed to planters who needed credit to finance their cotton and rice trade in the world market, to farmers who were eager to sell their surpluses, and to workers who wished to improve themselves. Demo­crats attracted farmers isolated from the market or uncomfortable with it, workers alien­ated from the emerging industrial system, and rising entrepreneurs who wanted to break monopolies and open the economy to newcomers like themselves. The Whigs were stron­gest in the towns, cities, and those rural areas that were fully integrated into the market economy, whereas Democrats dominated areas of semi-subsistence farming that were more isolated and languishing economically.