It's not a good way of accurately gauging the political spectrum but I'm not sure I'd say it doesn't work at all. A better method would be to add two more axes so you have x, y and z which would allow you to measure social policy (services, infrastructure), fiscal policy (an increase or decrease in state assets, taxation) and international relations (trade, alliances). The end result would be a kind of tetrahedron that represents the shape of a party's policy (that's not the point of it - it's just an interesting feature of having a three dimensional gauge).