(1) When the economic recession leads to an increase in unemployment, the downward trend of personal income is restrained by unemployment benefits, so that people who have lost their jobs and life difficulties can gain purchasing power, thus stimulating effective demand and promoting economic recovery to a certain extent.
(2) When the economy rises and the unemployment rate falls, the social security expenditure decreases correspondingly, and the scale of social security fund increases correspondingly, which reduces the sharp expansion of social demand and finally makes the total social demand and total supply reach a balance.
(3) It can be seen that social security expenditure automatically increases or decreases in the opposite direction with the changes of the national economy. This is the "internal stabilizer" function of social security expenditure means, which regulates the total supply and demand of society by means of expenditure, automatically stabilizes the phenomenon of overheating or supercooling of the economy, maintains social stability, and promotes and maintains a virtuous circle of the national economy.