In the United States economy, the progressive income tax and unemployment compensation are both

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Progressive income tax and unemployment compensation are both automatic stabilizers in the US economy. Progressive income tax means that as people earn more income, they pay a higher percentage of it in taxes. During an economic downturn, when people's incomes decrease, the amount they pay in taxes also decreases, which helps to stimulate the economy. Unemployment compensation provides a safety net for individuals who have lost their jobs, which helps to stabilize their income and limit the negative effects of unemployment on the overall economy. Both of these policies work automatically to stabilize the economy without the need for discretionary action from the government.

In the United States Economy, the Progressive Income Tax and Unemployment