Definition of Pump Priming

What does the term "pump priming" or "prime the pump" mean? What is the definition of the term "pump priming"?

"Pump priming" refers to the idea that government expenditures will contribute to a "self-sustaining" expansion of the economy. "Pump priming" is usually mentioned when the economy is in a recession.

If the government invests in infrastructure and other expenditures during times of recession, it is thought by some, the economy will begin a self-sustaining recovery. Government expenditure will lead to jobs, which will lead to increased savings, which will lead to increased consumer spending, which will lead to increased consumer confidence, which will lead to more businesses being opened and jobs being created, which will lead to a stronger economy.





This is the idea behind "pump priming".

With some pumps (actual pumps), water must be used to prime them so that they can work. Once the pump is working properly, it will not need to be primed again until it dries out.

This is the same idea as "pump priming" when it comes to the economy - an investment by the government (infrastructure, tax reductions, etc) will presumably lead to a stronger economy, which will presumably lead to economic growth once again.

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