I don't think that we need a third party. The two party system - while flawed - demands a coalition and stability. We don't think coalition because we don't have a trillion individual parties, but one exists nonetheless.
The way our parties work is by looking at a bell curve and each taking a half. Radical fringe groups start their own parties because they are insulted by compromise, so you get Republican and Democratic parties that contain diverse issue groups felt by the large, compromising majority.
Smaller parties are unnecessary and serve us better as the internal factions with less rigidity that they are.
The GOP lost this election because it had an unpopular president in office for 8 years; one who over-stayed his welcome in office for his second term with a nation under duress. It then decided that it would nominate an extremely old man who was incapable of articulating a cohesive narrative.
This isn't some insane rejection of conservatism but a sensible change. Some policy views have changed (as they always do) and they will be addressed the next time around, but the GOP would be well served to find a team that is inspiring and has new ideas.
I don't believe that a two party system is the problem.
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