The definition of an economic stimulus is an action taken by government to help the economy during a recession.
By spending money on state and federal infrastructure, the government hopes to provide jobs, and jump-start the failing economy.
Forms of Economic Stimulus
As part of the 2008-2009 Economic Stimulus Package:
- Money was given directly to workers - $300 was given to each worker.
- Money was given to states to fund public works projects.
- Money to businesses such asfunding the bailout of failing banks, supporting auto manufacturers that were having reduced sales due to the lack of buyers and supporting companies that invest in cleaner energy and green technology.
(noun)
- An example of an economic stimulus is the creation of more jobs, the availability of more credit or a tax rebate.
- An example of an economic stimulus is states and local governments receiving money for the repair and expansion of roads as well as help for underfunded education, small business loans and mass transit.