But with the present electoral system small parties are penialised. Now there are arguments for this as it prevents weak coalition governments from forming, however a third party will not get elected or at least not an interesting one.

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Remember that you are an Englishman, and have consequently won first prize in the lottery of life.
- Cecil Rhodes

All that's necessary for the forces of evil to win in the world is for enough good men to do nothing.
-Edmund Burke