Pump-priming

Definition

Using government spending to create employment and income, encouraging spending on goods and helping businesses recover.

Used by OCR

Paper 1

Paid employment provided immediate relief and could help recovery through pump-priming. A previously unemployed worker could spend wages on food, clothing and other goods. That spending increased demand, encouraging businesses to produce more and potentially employ more workers.
Revise: The Second New Deal

Create a free account to read GCSE History revision notes for your exam board and track your progress.

GCSE History · key term

Using government spending to create employment and income, encouraging spending on goods and helping businesses recover.

Used by OCR

Paper 1

Paid employment provided immediate relief and could help recovery through pump-priming. A previously unemployed worker could spend wages on food, clothing and other goods. That spending increased demand, encouraging businesses to produce more and potentially employ more workers.
Revise: The Second New Deal

Create a free account to read GCSE History revision notes for your exam board and track your progress.