Coverage Quote by Franklin Raines
“The automatic stabilizer is unemployment insurance, food stamps, additional coverage of Medicaid.”
About This Quote
Source Report: Economic Policy Review, 2005
Unemployment insurance, food stamps, and Medicaid act as automatic economic stabilizers.
In simple terms: These programs stabilize the economy automatically.
Support social safety nets.
Themes
Mood
Type
When to use this quote
- recessions
- budget planning
- government budgeting
- social services
Key Concepts
Questions to Reflect On
- How do stabilizers affect labor markets?
- What reforms could improve efficiency?
Programs can create dependency.