Automatic Stabilizer

A tax or spending program that changes with economic conditions without new legislation, cushioning fluctuations in household income and aggregate demand.

Progressive Taxation: A tax system in which the tax rate or share of income paid rises as income increases. Falling incomes automatically reduce tax payments, supporting disposable income during recessions.
Business Cycle: Recurring fluctuations in economic activity around its long-run growth trend. Stabilizers respond to the expansions and contractions that define this cycle.
Discretionary Fiscal Policy: Changes in government taxes or spending enacted through deliberate policy decisions. Unlike automatic stabilizers, these measures require new decisions or legislation.
Earned Income Tax Credit: A United States refundable tax credit for eligible workers with low or moderate earnings. Its income-linked value can support eligible households as earnings change.
Fiscal Sustainability: A government's ability to maintain its spending, taxation, and debt obligations over time. Recessions reduce revenue while raising some outlays, affecting budget paths and debt.
Unemployment Benefits: Payments to eligible people who are unemployed, usually funded through public programs. Claims and payouts typically rise when layoffs increase, replacing part of lost earnings.
Recession: A significant decline in economic activity spread across the economy and lasting more than a brief period. Rising unemployment and falling incomes make stabilizer responses especially visible.
Fiscal Stimulus: Government tax reductions or spending increases intended to raise economic activity. Stimulus is often a deliberate response, while stabilizers operate under existing rules.
Supplemental Nutrition Assistance Program: A United States federal program that helps eligible households buy food. Enrollment and benefit spending can rise as economic hardship increases.
Public Debt: The accumulated financial obligations owed by a government. Temporary deficits from stabilizer responses add to borrowing needs.

Linked from 18 pages