A genuine, viable third party could be a big help. Two parties makes it easy to formulate policy; you simply do the opposite of your opponents. With a third party present, your policy has to oppose without that opposition pushing you closer to one of your two opponents. Ideally, your best policy would be to advocate that which the majority of voters deemed appropriate.
At least that's the way it should work. Since dumbed-up people, and many of them (spit) lawyers, are involved, it would just turn into a three-directional mud slinging fest and nothing of value would be accomplished (IOW the way it is now).

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