Economic policies significantly affect political legitimacy as they can determine the populace's well-being and satisfaction with government performance. Favorable economic conditions often bolster government credibility, leading to greater public trust and support. Conversely, failed economic policies, such as rising unemployment or inflation, can erode legitimacy, triggering public discontent and protests. Additionally, inequality stemming from economic decisions can lead to marginalized groups feeling excluded, straining social contracts. Ultimately, the effectiveness and fairness of economic policies directly influence the social contract between citizens and their government, impacting overall political stability.