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Tsoukalas, George
English 213
16 September 2010
In Scott Beyer’s article, the ties that economic 'gridlock' can have with political
affiliations are statistically analyzed through research in order to assess a corollary between
economic equity and political regiment. Various comparisons are demonstrated in tables in order
to prove an existing correlation between healthy equity and its political influence. This article
begins with a citation alluding to economic notions of 'gridlock' according to popular financial
analyst Rebecca Byrne. A claim is made about how a country's government largely depends on
economic equity.
Conditions. This stage of this essay examines the predominant facts regarding political influence
within the economy and how influential financial analysts use this to their advantage when
choosing times to invest and not to invest. An interesting example is used by the authors of
Gridlock’s Gone, Now What? to relate the significance of political harmony and economical
gridlock within the U.S. The author states: “For example, in May 2001, Senator Jim Jeffords of
Vermont switched his party affiliation from Republican to Independent, ending Republican
control of the Congress (Beyer 2006)”, further implicating a necessary relationship between
political gridlock and a stable market. At the end of this stage, the author describes how
A second stage explains the actual study conducted using a sample of multiple indexes
ranging from 1949 to 2004 in order to provide a relationship of political influence and healthy
market. Qualitative classifications are later described in order to establish binary relations
between a divided government which leads to economic ‘gridlock’ and a unified government
equals harmony. Various income returns were thoroughly analyzed in this stage of the essay
leading to an in-depth analysis of various significant statistical results including an F-Test. This
was typically the method of experimentation within this statistical analysis: a study of periods of
gridlock and their volatility. In brief, this stage highlights the importance of gridlock and
explains how this study was conducted as a means to further illustrate the intermittent
In a third stage, the results of the experiment conducted on various statistical surveys and
analysis were explained. The author explains the periods of gridlock according to the data
collected and compares the results in a table. He states: “Bond markets may prosper during
gridlock because the lack of legislative action dampens government spending, inflation and
deficits (Beyer 2006)”, which strengthens the principle argument of economic prosperity during
times of political ‘gridlock’. This stage gives a detailed outline of how these results only
strengthen the initial hypothesis and how T-Bonds were used in the experiment to demonstrate
how periods of gridlock accentuate the process of political hegemony and is steeper on a
mathematical slope during periods of political harmony than those of ‘gridlock’. The regression
is later discussed in order to identify the principle argument of binary of monetary policy and
political affiliations.
The final stage which is the conclusion of the experiment sums up the experiment by
proving the causal relationship between the economic gridlock of the U.S. throughout 1949 and
George
2004. Three important factors are later discussed by Scott B. Beyer: the so-called myth about
‘gridlock’ and how it negatively affects the economy, the relation of store returns with that of the
country’s policies and, finally, the high return rate of stores and their statistical relevance.
This research analysis can safely confirm how political equity does strongly correlate
with harmonious ties within a government. This research does primarily focus on the U.S.’s
government, but proves how gridlock does not always lead to a negative economy. Furthermore,
the ties between income and link with political parties fluctuates in such a way that politics can
have an impact on our economy, but isn’t always beneficiary in terms of monetary equity.
Works Cited
Beyer, Jensen and Robert R. Johnson. “Gridlock’s Gone, Now What?” Financial