In 1854, Whigs who were not happy with the party's policies formed a new party, the Republican Party. Not until 1860 did the Republicans win a presidential election. That president, Abraham Lincoln, increased the involvement of the federal government into the affairs of the United States - Homestead Act of 1862 that gave low cost land to settlers, Pacific Railway Acts of 1862 and 1864 the subsidized the building of the Transcontinental Railroad, and Morrill Act of 1862 that gave land for the land-grant colleges.
Now the Republican Party is dominated by people with a narrow understanding of the Constitution and a narrow understanding of how a vibrant economy works, an economy supported by government-provided infra-structures.
I doubt that a new party will be formed by grass-roots action, be it the Coffee Party or the Occupy Wall Street activists. I think a new party will only be formed by a dedicated group of professional politicians. I hope that there are enough "old-school, New England-type" Republicans, tired of being beholden to the corporate-sponsored Tea Party, who will form a new pragmatic party. There are plenty of Republicans who have a broader view of what needs to be done. Unfortunately, many were defeated by Tea Party candidates in 2010. These "losers" could provide a nucleus for such a party. They have small chances of fielding a popular candidate by November 2012, but who knows what could happen in 2014 and 2016.
