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stimulus

STIM-yuh-luhs /ˈstɪm.jə.ləs/

nounC1GREGMATUPSCCAT

formalnewsacademic

Something that incites action or exertion or quickens action, feeling, or thought; specifically, spending or tax incentives introduced by a government to spark economic activity during a recession.

Refers to macroeconomic spending intended to ignite broader private sector activity.

The story behind the word. In ancient Rome, a 'stimulus' was an iron-tipped wooden stick or goad used by farmers to prod oxen and horses to move faster along roads or fields. In the 20th century, economists borrowed the word to describe policy measures designed to prod a sluggish economy into motion.

Word relationships

incentive: An 'incentive' is a specific reward offered to motivate particular behavior, whereas 'stimulus' is broader energy injected into an entire system.
catalyst: A 'catalyst' initiates or speeds up change without being consumed itself; a 'stimulus' is an active boost or jump-start.

austerity: 'Austerity' involves reducing spending and raising taxes to cut debt, whereas 'stimulus' involves increasing spending to prompt growth.
deterrent: A deterrent discourages action, whereas a stimulus encourages and accelerates action.

Commonly confused with

stimulant: A 'stimulant' is a physical or biological substance (like caffeine); 'stimulus' is an economic, psychological, or situational spark.

Word family

stimulate (verb): To encourage interest or activity.
stimulating (adjective): Encouraging or inspiring interest.
stimuli (noun (plural)): Multiple encouraging forces or inputs.

Collocations

stimulus package
economic stimulus
fiscal stimulus
stimulus checks
provide a stimulus

Example sentences

"Following the downturn, Congress approved a massive economic stimulus package to boost consumer spending." Macroeconomic Recovery
"Lower interest rates served as an effective stimulus for housing construction across the nation." Central Bank Commentary

Memory hook

Stimulus = GoAding the economy to move forward rapidly like an ox under a prod. Stimulus = Sparking economic growth.

When not to use

Do not confuse the plural form: the plural of 'stimulus' is 'stimuli'.

Fun facts

Roman soldiers also used the word 'stimuli' to describe hidden wooden spikes planted in trenches around military camps to injure advancing enemy troops.