The above data accumulated by the Congressional Budget Office (CBO) seems to suggest that the U.S. economy has been spasmodic for the fourth time in the past five presidential election cycles that have featured divided government.

Hence the question is whether a causality exists between divided government and slower economic growth? While its not as predictable as the data may suggest one has to consider budget balance and debt-to-GDP ratios when going into a presidential cycle since these have an impact on the degree to which government is willing to expand its deficit.

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