Economic policy influences social welfare by determining how resources are allocated and managed within society. Decisions regarding taxation, government spending, and social programs directly affect the distribution of wealth and access to essential services. For instance, robust economic policies that promote job creation and fair wages can enhance social welfare by reducing poverty and improving living standards. Conversely, austerity measures may limit social programs, negatively impacting vulnerable populations. Ultimately, effective economic policy is integral to ensuring that social welfare objectives are met and that citizens' needs are adequately addressed.