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Alcohol affects the body and the mind in many ways.
One of the most important effects of alcohol is on the brain, particularly on the frontal lobe and cognitive processes. Alcohol decreases a person's capacity for reasoning and judgment. One of the main reasons alcohol is seen as a social lubricant has to do with this effect.
With a decrease in reasoning and judgment comes decreased feelings of awkwardness and a feeling of being more social. In addition, people may feel more at ease to approach new people, dance, or try new things.
With this decrease in reasoning and judgment also comes an increase in doing and saying things we will later regret, embarrassment, engaging in risky sexual behavior (not using a condom or multiple partners), and a potential increased risk for sexual assault. In addition, we may not be able to accurately "judge" how drunk we are and may end up over-consuming, putting ourselves at increased risk for problems as seemingly mundane as puking and/or hangovers to more severe issues like blacking out, passing out, or even death due to alcohol poisioning.