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.
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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.


Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
I also have to admit that with all of Greenspan's pump-priming, I would have expected the economy to be doing a bit better than it is by now -- at least in the short term.
Malaysia will introduce another round of economic pump-priming measures as the threat of war in Iraq looms and the world's economy remain lackluster, Prime Minister Mahathir Mohamad said Monday.
Council officers said they could gain a pounds 10 million performance bonus and pounds 1 million pump-priming money.
officials have urged Japan to come up with an 8-10 trillion yen pump-priming package on grounds that Japan's domestic demand expansion will contribute toward helping other Asian economies.
Japan has been struggling to secure funding sources to fully conduct the pump-priming measures the DPJ promised during the campaign for last year's general election, such as childcare benefits and toll-free expressways.
Investors' confidence in the global economy was bolstered after the finance ministers and central bank governors from the G-20 industrial and emerging countries pledged to take more pump-priming measures at the conclusion of their meeting in St.
"To tackle congestion we have provided pump-priming funding to a number of major towns and cities to develop bids for money from the Transport Innovation Fund to implement road pricing and complementary supporting transport investment.
The governing party's decision-making General Council adopted Thursday the pump-priming package, featuring front-loading of public works spending and outlays for such fields as information and communications.
Aso favors massive pump-priming measures, how to finance increasing social welfare costs, how to protect irregularly employed workers, etc.
Aso instructs ruling coalition to compile new pump-priming measures
''What has saved the day for Malaysia was the timely intervention by the government,'' he said referring to 3 billion ringgit (about $789.5 million) and 4.3 billion ringgit pump-priming measures unveiled respectively in March and September by the government to help cushion the effects of the global economic slowdown.
TOKYO - Prime Minister Taro Aso said Thursday he has instructed the ruling Liberal Democratic Party and its coalition partner New Komeito to compile additional pump-priming measures in response to the global financial crisis.