What is the difference between automatic stabilizers and discretionary fiscal policy?

What is the difference between automatic stabilizers and discretionary fiscal policy Introduction: The Quest for Economic Stability Hello everyone! In the ever-changing world of economics, stability is a prized goal. Governments and policymakers employ various strategies to achieve this, with automatic stabilizers and discretionary fiscal policy being two prominent approaches. Today, we'll explore how these tools differ and the implications of their usage. Automatic Stabilizers: The Built-in Safety Nets Automatic stabilizers are mechanisms that kick into action automatically during economic fluctuations. They are inherent features of the economic system, requiring no explicit intervention. Examples of automatic stabilizers include progressive income taxes, unemployment benefits, and welfare programs. During a downturn, these stabilizers provide a cushion, boosting aggregate demand and softening the blow. Similarly, during an upswing, they act as a check, curbing excessive growth and inflationary pressures. Discretionary Fiscal Policy: The Hands-on Approach In contrast, discretionary fiscal policy involves deliberate actions taken by policymakers in response to economic conditions. It is a more active and targeted strategy.