How do Elections Affect our Economy – HowFlux

How do Elections Affect our Economy

How Elections Affect The Economy


Elections refer to the time when nation awaits a new leader chosen by its people. The leader thus chosen by the people becomes their representative and reaches the house to put forward their problems. In a country like India, where elections are held after every five years, it makes a direct impact on the economic condition and thus “elections affect an economy” is true for a country like India. Let us discuss how.

How do Elections Affect our Economy

How do Elections Affect our Economy

1. It Hinders All Kinds of Developments:-

When elections are just about to be commenced, all kinds of development options get hindered. The investors stop planning for their firms and instead get busy in investing in election campaigns. Lakhs and crores of bundles of currency notes move from one place to other to be spent for election campaigning.

2. People Invest More in Campaigns:-

During elections, people invest more on their elected representatives than on investing on anything else. Political leaders are weighed with currency notes equal to their weight and money flows like a river for campaigning purposes.

3. All the Old Plans Get Cancelled or Changed:-

All the old plans that the ruling party was supposed to accomplish get postponed and it is always the winning party’s choice if it continues with them or not. The ruling party tries to make enough marks for itself to be presented as a bate before people to come into power again, but the other parties try their best to overcome it. Money and muscle power become the two adjudging factors in such a situation.

4. Mirage Created by the Ruling Party:-

Ruling party tries to create a mirage for people in order to gain maximum votes from them in order to come in power again. Politicians are presented with garlands of currency notes and alcohol is served like a bottle of elixir. Honking horns are hired to campaign for specific party and pamphlets and propagandas are printed to support the issue. This continues in a same way till the date of elections.

5. Loans Are Distributed More Just before the Elections:-

According to a report, even loans are distributed more just before the elections in a country like India. India, being a big democracy has a huge competition for coming in power and thus the politicians try their best to campaign for themselves. Huge amounts of money are borrowed to invest as an election campaigning amount and this it affects the economy.

6. It Inflates the Economy:-

Elections inflate the economy of any country. International investors also show interest in making investments for political parties and this brings about a flow of money inside the nation. Actually a scene of opposing is created this way in which one party is praising its qualities claiming that it will bring good fortunes for the country while the other is trying to oppose the first party making response campaigning in front of it.

Parties ask foreign investors to invest on them and this increases the competition and thirst for power. Even the investors know that if their candidate wins, their works will easily get fulfilled or completed and thus they try their best to make a party win by financing it with their full support and all this creates a kind of economic effect on the concerned nation.


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