While most people want to want to remove the default "the-empty-line-generating-a-new-paragraph"-function, I myself do not even have it working on my system to begin with.
I recently installed the latest MiKTeX distribution and I am able to seamlessly generate my LaTeX PDF-documents (I have Texmaker on my machine but use it scarcely; I much more preferably and frequently use Sublime Text 2 together the LaTeXTools package instead).
I tried compiling the follow piece of code:
\documentclass{article}
\begin{document}
Hello this is the first paragraph.
Hello again, this now is the second paragraph.
\end{document}
I was hoping that the generated PDF would have two different paragraphs but what I instead found is simply a "Hello again, this now is the second paragraph." landing right below the first sentence, as a line break. See picture:

Why does this happen? I thought it was supposed to be a default setting.
\parskip 1exor some other suitable length. If you wish to change the paragraph indent, use\parindent 1em, for example. – Steven B. Segletes Jun 03 '13 at 11:37\newlinein a latex document. – David Carlisle Jun 03 '13 at 12:03\newline(which would prevent latex forming a new paragraph anyway)? Marco already told you about\parskipin his answer. – David Carlisle Jun 03 '13 at 12:29