The economic system of a country often determines how it is governed. For example, the United States moved from the mixed economy of the mid-twentieth century, in which there was both a strong government sector and a strong business sector, to the modern economy, in which a weakening the government sector in favor of the corporate sector has led to more oligarchy and less democracy. In objective terms, this can be either good or bad, depending on how the oligarchy is managed.
In the Middle Ages, land-based wealth (with agriculture as the main economic engine) led to a hierarchical system built on aristocracy and monarchy, as a hierarchy was deemed the best way to organize a land-based economy. Those with the most land had the most money and power, which allowed them the added resources to defend large geographic areas against attack and invasion, a useful thing in an uncertain and unstable time period.
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