Phrase. To prime the pump means to do something to encourage the success or growth of something, especially the economy.
What Does Priming the Pump Mean?
In economics, priming the pump is a policy of temporarily increasing government spending in order to stimulate the economy.
The term “priming the pump“ is often used to describe Keynesian economic policies, such as those implemented by Franklin D. Roosevelt during the New Deal.
The idea behind priming the pump is that the government can jumpstart the economy by increasing spending. This extra spending can help to create jobs and increase economic activity.
The increased economic activity can then lead to more tax revenue, which can help to offset the costs of the initial stimulus. There are a number of different ways that the government can increase spending.
One way is to direct money towards infrastructure projects. These projects can create jobs and help to improve the country‘s infrastructure.
Another way is to provide tax breaks or subsidies to businesses. This can encourage businesses to invest and expand, which can create jobs and boost economic growth.
There are also some risks associated with priming the pump. One risk is that the government may not be able to effectively target the stimulus.
This can lead to the money being wasted on projects that don‘t create jobs or spur economic growth. Another risk is that the government may create too much inflation by increasing the money supply too much. Overall
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