pump priming

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Pump Priming

Any government action taken to spur economic growth, especially when growth is sluggish or negative. Pump priming is nonpartisan; that is, pump priming policies may be conservative (e.g. tax cuts), liberal (e.g. increased spending) or some combination of the two. The term originated during the Great Depression and fell out of use after World War II. However, it came back to some extent during the late 2000s recession.

pump priming

spending by the government on PUBLIC WORKS, etc., that is aimed at increasing AGGREGATE DEMAND in order to stimulate economic activity and raise NATIONAL INCOME. Increased government spending will, through MULTIPLIER effects, enlarge spending in other sectors of the economy, serving to reduce UNEMPLOYMENT and increasing output of goods and services.


References in periodicals archive ?
He has bent to the European Community on monetary stability, aware that the old inflationary pump priming has run dry, and has presided over the largest withering away of the state in French history.
We're not talking about classic 'New Deal' pump priming, but addressing a fundamental issue to maintain a world class city.
It is environmentally friendly, oil-free vacuum pump priming system, which removes air from the water, ensures uninterrupted, unsupervised operation.
Almost 50% is down to the bank bail out and the pump priming the Government undertook to make this recession shallower than the ones in the 1980s and 1990s.
Mr Houston said: "This pump priming is for anybody who has a good idea, but does not have the cash to develop it.
There is an emerging consensus that the public sector's economic development agencies need to focus their efforts on infrastructure pump priming with transportation at the top of the tree.