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If you are playing a pacifist xenophile, you dont really want many pops militarist or xenophobe as an example.
Each tick of time (I'm not certain of the scale - it could be a day or a month - the wiki may know, but I don't), there is a small chance that a pop will change their ethics. I'm *fairly* sure this is checked for each pop, so it's not like 1 per tick max or anything, but I could be wrong.
There's a variety of factors that govern how likely a pop is to change, which is all rolled into how 'attractive' each ethic is for a given pop. A lot of this information is hidden - for instance, having lots of treaties with Xenophile nations will increase the attractiveness of the Xenophile ethic. Having an elected leader who belongs to a Spiritualist ethic will increase the attractiveness of Spiritualist, and so on.
The point of 'Government Ethics Attraction' is to have a blanket stat that pushes your populace towards the various ones you picked at the start of the game, rather than need to push individual ethics. Presumably, because that's the playstyle you're going for - things like Propaganda Broadcasts and Orbital Mind Control Lasers are essentially there for Nations that like to go to war - its a way to slowly convert conquered population to your own way of thinking (as opposed to eating / murdering them all and replacing the planet with your own).
As a side effect, the new Factions system is tied heavilly into Ethics Attraction - suppressing a faction gives a big penalty to the attractiveness of its associated ethic, and by stacking heavilly on Governement Ethics Attraction, you can force people out of those factions as they slowly change ethics.
Keep in mind - its a pretty slow process. And often, if you're a 'nice guy' empire, it can be very VERY hard to keep everyone the ethics you want, because things like Migration Treaties, Refugee Allowances, and general trade agreements with other nations jack up the attractiveness of various Ethics super high. I've got a game now where I have research treaties with half the galaxy, and I've just given up on managing ethics for my species. Originally they had a lot of points in "-% other species happiness", and I've just given up and bio-engineered those traits away for other stuff, haha.
More in depth comment above, but in generally, it is good, because usually your government ethics lock you out of (or into) certain government policies, and the factions that spawn due to ethics in you population want certain things. High government attraction pushes out the guys who REALLY don't like the things you're doing - unhappy factions cause unhappiness on your planets, which lowers income and can cause unrest, which can lead to revolts.
Generally, as long as you keep factions moderately happy (like ~40-50% or better), you can make due with various edics, policies, buildings, and tech that boosts happiness, and avoid any real major headaches. So you dont HAVE to push Ethics Attraction. But it sure as hell helps.
I don't know why but this part made me actually lol.
Also, nice explanation, thanks!