The pronoun it has a number of uses. First, it can refer to an object or idea or to a baby or animal whose sex is unknown or unimportant. It should have a clear antecedent.
Darwinism strongly influenced nineteenth-century American thought. It even affected economics.
The Moodys' baby is generally healthy, but it has a cold at the moment.
It can also serve as an expletive.
It is necessary to sand wood before painting it. Do not unnecessarily use it as an expletive, however.
(See also its/it's.)