Before discussing how a variety of social factors affect political systems or the economy, what defines a social factor? It is a representation of influences that hold importance on consumer behaviors. Examples of social factors are gender roles, ethnicity or race, education, religion, education, and population. From these instances, these instances heavily impact the economy to increase or decrease its development while the political system is supported or against. The three main focuses that greatly affect economics and politics are population, education, and religion.
Religion influences economics by the increase of church attendances will cause a decline in the economy. For economic trade, a share in belief would gain and reduce transaction costs from trading partners. From a political system standpoint, religious beliefs are connected to national political participation which tends to increase by church activities. However, some Christian groups such as Jehovah's Witnesses and the Amish reject politics because of their beliefs and Christ's statements about “His kingdom not belonging to this world means that earthly politics can, should, must be rejected.”
The second social factor being education tends to affect the economy to become more productive by the increase of educated workers and efficiently solve problems with critical thinking, knowledge, and skills. From this, it impacts the business and economic growth in the labor supply and the education provided for these skills in colleges or universities will increase wages. Education impacts the political system by disciplinary policy change, government funding storage but also encouraging interest in civic responsibility.
Population impacts economic growth by enlarging the labour force and providing a large domestic market. This social factor encourages competition which induces technological innovation and advancements. However, population growth in third world countries with high birth rates or surrounded by poverty tend to detriment savings, investment, and economic development. An article it quotes that in “A developed country with low population density and a low percentage of employable people needs an increase in population to keep up with economic development.” This also results an upcoming increase of immigration were many would immigrate for better opportunities such as education, employment, and possible health care (in countries like France or Canada). Effect on the political system from population which connects immigration is an opposing subject to the Republican party and fund more to the enforcement action within the border while the Democratic party would provide benefits or support to a few undocumented immigrates.
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