Workflow
Stimulus Plans
icon
Search documents
How the Economic Machine Works Part 5
[Music] All of this impacts the central government because lower incomes and less employment means the government collects fewer taxes. At the same time, it needs to increase its spending because unemployment has risen. Many of the unemployed have inadequate savings and need financial support from the government.Additionally, governments create stimulus plans and increase their spending to make up for the decrease in the economy. Government's budget deficits explode in a deleveraging because they spend more ...