Economic policies have a profound effect on political stability. Sound fiscal management and growth can enhance public support for the ruling party, promoting social cohesion. Conversely, poor economic performance often leads to discontent, protests, and calls for political change. Factors such as unemployment, inflation, and income inequality can strain social contracts, making it challenging for governments to maintain legitimacy. Ultimately, the intersection of economics and politics highlights the importance of responsive governance to foster a stable political environment.