Automatic stabilizers

This tag is associated with 2 posts

US – Automatic Stabilizers in the Federal Budget, 2020 to 2030

Federal revenues and outlays regularly respond to cyclical movements in the economy in ways that tend to dampen those movements; the budget mechanisms that drive that process are known as automatic stabilizers. Those mecha- nisms help stabilize the economy automatically, without any legislated changes in tax or spending policies. In this report, the Congressional budget … Continue reading

Automatic stabilizers in US – A major tool the government uses to respond to recession (video)

Automatic stabilizers—mechanisms built into the federal budget that increase spending or decrease taxes when the economy slows without any vote from Congress– are a major tool the government uses to respond to recession. For instance, spending on unemployment compensation automatically increases when there are more people out of work. During the Great Recession, automatic stabilizers … Continue reading

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