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multiplier effect

Cultural  
  1. An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries in the factory's vicinity.


Example Sentences

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Infrastructure investments have an important GDP multiplier effect that can foster significant economic growth by keeping basic services available and flowing, Cliquet said.

From MarketWatch ● Aug. 11, 2026

"Vinted's journey has certainly been intertwined with the broader development of Lithuania's startup ecosystem," said the company's vice president for corporate affairs, Jessie de la Merced, arguing that its presence has had a "multiplier effect".

From Barron's ● Aug. 2, 2026

"The fiber-optic cable allowed us to measure this incredible calving multiplier effect, which wasn't possible before," says Gräff.

From Science Daily ● Nov. 14, 2025

Manufacturing remains the key to productivity growth, packs a far higher multiplier effect on local economies than retail, trade or finance and generally pays far higher wages.

From Los Angeles Times ● Sep. 4, 2025

The interaction between indexation, net subsistence, the tax parameters cause a multiplier effect.

From Definition & Reality in the General Theory of Political Economy by Thomas Colignatus

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