Question

How does social conditions/issues affect the economy and the stock market in a country?

Use America & China as an example

Answer 1

Social conditions have adverse affect on economy.

* Social ills such as inequality, poverty, underdevelopment hampers the growth of economy.

* Corruption leads to policy paralysis. Some policies look good on paper but due to bureaucratic inefficiency policies couldn't be implemented.

* Insufficient infrastructure such as lack of proper roads, ports prevent country from development.

Similarly stock market didn't function properly in event of social events.

Stock market tells us about the state of economy.  

People won't purchase stock of companies and thus company won't get investment . If companies couldn't invest than they can't earn profits, couldn't pay dividends to investors and the stock of company will fall indicating poor health of stock market.