Economics
Divided Government and Fiscal Policy Output
Quick fact
Empirical studies in the US show that divided government does not consistently reduce deficits; in fact, some periods of divided government saw larger deficits than unified government, because partisan bargaining led to agreements that increased spending without corresponding tax increases.
Why this is interesting
You've probably heard that 'divided government' means nothing gets done in Washington. But is that actually true? Sometimes the opposite happens—deficits balloon and spending rises under divided government.