The Automatic Stabilizer has the following advantages:
In the business cycle, it reduces the fluctuations automatically when the recession effects takes place
The government concentrates highly on the factors like unemployment, food stamps and welfare and spends more which helps in boosting the consumption of the households. It leads to the reduction in the size of the contraction of the economy
When the income level of the individual decreases, the tax taken for the US will be in deceased state
This helps in the stabilization of the present situation
These concepts are highly used in the government and in other problems related to the welfare of the economy.
