why is contractionary policy unpopular 
contractionary policies require elected officials to increase taxes and reduce government spending like social and welfare programs both unpopular with voters the bottom linea contractionary policy is a tool used to reduce government spending or the rate of monetary expansion by a central bank to combat rising inflation the main contractionary policies employed by the united states include raising interest rates increasing bank reserve requirements and selling government securities contractionary policies are often difficult to implement as they may also include increases in tax rates higher rates of unemployment and a decrease in government programs and subsidies 