The periods that precede elections have often been characterized by high-intensity campaigns. As a consequence, greater focus during this period has mostly been on political communication that is unrelated to the real policy challenges that the country is faced with. Coupled with the recent history, this period causes anxiety to citizens and economic actors who think that this pre-election period exposes a country's fragility. Below are the effects of Elections on an Economy. 1. Government Debt The first and most obvious impact of an election is a significant increase in national debt being taken by the government. Elections across the world are marked by the introduction of policies that are economic disasters but have political benefits. The rollout of welfare schemes which will become unsustainable in the long run is a common ploy that is used by parties that are in power to woo the voters. Such manipulation would not work if the voters were rational and were likely to ele...
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