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Political Polarization: It's Worse Than You Think

Political polarization has increased since the 1980s, and its spikes have depressed employment, investment, and output, says a study (PDF) released on Friday by the Federal Reserve Bank of Philadelphia. That won’t come as any surprise to people who have lived through this month’s partial government shutdown and brush with national default. But Philly Fed economist Marina Azzimonti wrote the study well before the October “fudget” debacle. Her data extended only a bit past the fiscal cliff negotiations at the start of 2013.