SOCIAL POLICY AND ECONOMIC STABILITY

Abstract

This article examines the critical role of social policy in promoting and maintaining economic stability. It explores how government interventions in areas such as healthcare, education, social security, and income redistribution contribute to reducing inequality, enhancing human capital, and fostering social cohesion. The study analyzes the interplay between social expenditures and macroeconomic indicators, emphasizing the importance of balanced social spending to sustain growth without triggering fiscal imbalances. Using a combination of empirical data and case studies, the paper highlights best practices and policy challenges faced by developing and developed economies. Recommendations are provided for designing inclusive social policies that support economic resilience and long-term stability.