The way I see it, it benefits the two parties that exist for a few reasons. First, you have staunch Dems and Republicans. This causes a certain portion of the population to vote party tickets, regardless of the candidates. This shaves some ability for independants or "third" parties to get a good candidate truly in the race. The next problem comes from people's inability to vote their conscience. I've complained about this in other threads as well. I know a lot of people that voted for Bush because they didn't like Kerry, or vice versa, and wouldn't "waste" their vote on another candidate because it may help the person they really HATE win. This makes no logical sense to me. I voted for the Libertarian cadidate because I felt he was the best candidate we had to choose from. I tend to like Libertarian politicians, but would also NEVER vote a party ticket just to vote in that party. I always evaluate candidates individually, outside of their affiliations. If everyone did that, we wouldn't need/have a bipartisan system.
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