history of US economic recession

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The History of the American Economic Recession

This year, there has been murmurs that the United States will be entering, again, directly into an economic recession. Although the National Bureau associated with Economic Research still has not release any kind of formal announcement regarding this, American people are starting to experience an economic decline and a downturn in their financial and personal existence.

This would not be the first time that the United States would certainly experience an economic economic depression. According to economists, since 1854, the United States has came across 32 cycles of expansions and contractions (boom and bust). There would end up being and average associated with 17 months regarding contraction an 38 months of enlargement. However, since 1980 there were only eight durations of negative monetary growth over one one fourth or more.

There were three period considered to recessions:

January- Come july 1st 1980 and July 1981- November 1982: two years in total
July 1990- March 1991: ten months
November 2001- Nov 2002: twelve months

The particular longest record to have an American economic boom was 37 groups during 1991 until Two thousand.

The first economic recession took place in 1819. It significantly affected the new country. After the War of 1812, the American economic system was experiencing monetary strains. In 1814, throughout the term of Chief executive Madison, he allowed an alternative of a national lender. This enabled the particular post-war economy to boom. Although in 1817, there were some financial irregularities and irresponsibility. Americans began buying extravagant amounts of western lands- more than they could afford. The government started selling the land on credit.

On 1819, the us government started to demand payment from the loans. During this period, the economy is beginning to slow down. The market growth could not sustained, the demands of yankee products are starting to wane. This led to any wave of personal bankruptcy and foreclosures. Terrain owners found by themselves unable to pay their government debts and also debts in the banking institutions, leading to repossessing of lands.

After the 1817 recession, one more recession in 1837 implemented. With this recession, within two months time, the economical decline accumulated to just about $100,000,000 in value. There were supposedly 343 banks that sealed (out of the 850 banking institutions). While 62 financial institutions reported partial failing.

There were recessions that took place in 1857, 1873, 1893 and 1907. The 1907 economic recession was a economic crisis. Nearly 50 percent with the stock market fell from its peak in 1906. It’s primary cause was a retraction of loans simply by some banks in which began in New York City and soon spread in to the whole country. The particular 1907 recession was the fourth recession in 34 years.

The post-World Battle I recession hit not only the United States however much of the nations globally. Pre-war economy had been showing fast economic growth. As a matter of truth, the decade before the war, the world economic system was growing record high. After the conflict, the global economy mentioned to decline. The sharpest or perhaps worst decline had been during 1921. the recession was obviously a result of the end associated with wartime production along with the return of the soldiers without any employment. Worldwide production was also impacted by the war, specially those countries whose market sectors were shattered through the war.

What followed was known as the Fantastic Depression that took place from 1929 until 1939. It is the most dramatic, worldwide economic landslide. It afflicted not only industrialized nations around the world b out also nations who rely in exporting their raw materials. It was the greatest and most important economic depression in the world.

Five recessions in the usa followed after the Great Depression. It was these tough economic times during 1953, 1957, early in the 1980s, early during 1990s and also early 2000.

Early 2000 economic recession had not been felt only in the usa, but was experienced in most Western Nations around the world. The European Union was largely hit during Two thousand and 2001. While the United states was impacted mostly during 2002 and 2003.

Comments: 30

  1. Minerva March 12, 2013 at 10:33 pm Reply

    With all the political instability, it appears evident to me that the US government is lying like usual. Not to mention, PM Harper dissolved parliament, which has never been done in Canadian history. Seems like a big fake diversion to me, just like every other event in American history. In my opinion, this would be a criminal act against the people of all three countries, Canada, US, and Mexico. Seems like a violation of the civil liberties of the legitimate and self-aware people in these countries. Anyone feel the same way?

  2. Lance April 6, 2013 at 6:21 am Reply

    I see all these liberals saying that we are in a recession or a depression or whatever and yet, we have like a 4.5% unemployment rate or something close to that. How can this be like the great depression? And I hear them say that the deficit is the highest in history, but of course that is true since we have a $13 trillion economy. If you take the deficit as a percentage of our GDP, then it isn’t very high. Economic growth is high, inflation isn’t any different than in the past, more people own their homes and are college grads than every before, so where is the disaster? I’m trying to figure out the liberal perspective on things, but I just don’t see tons of homeless people and “going out of business” signs like I would in a normal depression. What am I missing here that makes me so much poorer than I realize?
    jorge, political liberals, clearly, not economic liberals lol.

  3. Keith April 11, 2013 at 1:24 am Reply

    I’m hoping for some answers from “experts”—-maybe some economists and business-minded people. I realize that several factors such as fuel shortages, the mortgage crisis, and a service-oriented economy are likely to exacerbate any economic downturns in the U.S., but does anybody know how long typical recessions last? I’m looking to start a business and I’d like to wait until the economic outlook is more promising. Will it most likely be 1 year? Five years? Also, is there anybody out there with an expert opinion as to how bad the recession might get? Thanks guys, for your answers.

  4. Brett May 7, 2013 at 8:08 pm Reply

    This question is for an essay I wrote: “To control our money, and to use bikes instead of cars (so we wouldn’t spent much gasoline)” was those two ok? What should I put? What are your answers and why? (dont put stupid answers, please)

  5. Mack June 3, 2013 at 9:18 pm Reply

    Can you list the 3 biggest factors of the recession?

    And a side question…when one looks at a stock chart…the graph is not a straight line, rather a “spiked line”. Why is that?

  6. Joelle June 27, 2013 at 2:23 am Reply

    I mean if people are unemployed because they lack useful marketable skills so be it.
    Why should gov’t tax people doing useful jobs to create non-needed jobs?

    Are there such economic schools of thought?

  7. Florentina July 8, 2013 at 1:36 am Reply

    When did this economic recession start in the first place? I assume that this crisis hurt almost all sectors out there? However which sectors do you think are affected the most harshly due to it? (Retail, real estate etc, ) Thanks.

  8. Carina July 13, 2013 at 5:20 am Reply

    What does Keynesian Economics say the government should spent money on during and to get out of a recession or depression to create Jobs in the private sector in other words what does keynesian economics say the government should do to put money in the hands of the Consumers or to get Businesseses to hire again ?

  9. Domingo July 18, 2013 at 9:56 pm Reply

    What impact did the recession have on US history?

  10. Mari August 11, 2013 at 12:14 am Reply

    Are there any other countries the US owes debts to? Is that why USA is reluctant to intervene in Syria and stop the massacres?

  11. Dave September 7, 2013 at 11:49 pm Reply

    World leaders are meeting at the G20 conference in London to address the global economic crisis. We are looking for your answers on what our governments can do to overcome this recession.
    More details are available on the Yahoo! Answers blog: http://yanswersblog.com/index.php/archives/2009/04/01/economy-in-crisis-the-g-20-is-on-it/

  12. Alessandra October 16, 2013 at 10:02 pm Reply

    I’m 14, and I’m concerned about the country’s direction. We’re in trouble economically and we have a deficit crisis. Yet the Democrats’ policies are completely against the principles America stands for: limited government, free enterprise, and personal responsibility. Their policies make it harder for people to create jobs.
    -The Democrats support raising taxes on “the rich” and “greedy corporations”, yet the rich are the ones that create our jobs! And raising taxes on business means less money can be used to create jobs. They also want to raise spending ad infinitum, which increases the national debt. This creates a huge cloud of uncertainty in the business community about if their taxes will go up. We already have the highest corporate tax rate in the world and businesses are in mass exodus to countries with fairer tax codes.
    -The Democrats support more job-killing regulations of industries.. For example, if an onion farmer drops a few of his onions on the very same soil it’s grown on, those onions can’t be brought to market. This raises food prices, which in turn, means less economic growth.
    -The Democrats support increasing the minimum wage. This sounds like good policy, but it means companies can hire less employees. It’s unfair to poor people because it decreases the amount of unskilled labor a company can hire. Also, it drives up the cost of products, discouraging consumption, which is very bad for the economy.
    -The Democrats refuse to allow drilling offshore and on the ground. They won’t let us open nuclear power plants or mine for coal. All of this because of the population of some rare species of caribou or environmental extremist reasons like that. Come on! This makes us more dependent on oil from overseas, and it increases the cost of energy. This severely shrinks our economy and it creates pain for families. Gas is at $4/gallon, and Obama’s solution is to tax the oil companies more! Outrageous! Real scientists, like the co-founder of the Weather Channel, know that global warming is a myth!
    -The Democrats oppose the Connie Mac plan which cuts government spending 1 measly percent a year! They’re so opposed to cutting any spending whatsoever and they were able to whine enough to get John Boehner to sign onto a deal that had lots of “future” spending cuts and a lot less in real cuts.
    -The Democrats support “right-to-work” legislation forcing people to join a Union. This makes the US less business-friendly. And the Obama administration wouldn’t let Boeing move its factory to South Carolina because South Carolina was a right-to-work state! Prohibiting a company from doing business and creating jobs when families are struggling? What kind of “change” is that?
    -As I pointed out earlier, Democrats support increasing taxes which winds up decreasing government revenue. When you take a greater percentage out of the private economy, you have a smaller economy and less growth. This hurts the amount of revenue government takes in.
    -Democrats have opposed every real plan to reduce the deficit, including the Connie Mac plan(mentioned earlier), Cut Cap and Balance, and the Republican Study Commission Plan. They are the party of no solutions, blank checks, and smoke-and-mirrors budgeting.

    All in all, Democrats are a conglomerate of liberal activists, freak-environmentalists, atheist progressive vegans, union thugs, and socialists.

    Please tell me Democrats, why do you oppose cutting government spending and promoting economic growth? Balanced budgets and lower taxes are basic principles that made this country strong. Socialism has always failed. Entrepreneurship is what will save us from the recession, not more government spending. You are jeopardizing my country’s future by leaving us a mountain of debt(crisis started in 2006 when the Dems took over Congress) and a weak economy. Why?

  13. Rodrick October 23, 2013 at 1:09 pm Reply

    Have we not learned anythingfrom history? Doesn’t an increase in devalued money into the economy increase the likely hood of inflation? Who is to say the markets will loan money? As our base interest rates have gone down over the past year interest rates have gone up. Even if the markets free up want the interest rates be so high they will further destabilize our economy?

  14. Dave November 10, 2013 at 6:03 am Reply

    I mean China aren’t going to let the us just leave and forget.
    They aren’t scared of us. I think they really hate us. What would happen.
    And please don’t say war, i love chinese restraunts lol
    If china wants territory i reckon they’ll take the western states
    that would restrict the water ways

  15. Hung December 23, 2013 at 8:55 am Reply

    With our country’s deficits and continued war spending I’m afraid the middle of 08′ will bring a huge economic downturn. What can I do now to prepare? I have a 401k, and IRA and considerable savings. Should I be storing more cash than investments? Also, I came back from working in Japan last year and never exchanged my yen. I have about 10 grand worth. I was thinking of exchanging it but should I maybe hold on to it as a cash reserve as the dollar drops over the next years? What are some actions that can be taken now to lessen the hardship to follow? Serious answers please. I didn’t study economics so I wonder what the academic predictions are?

  16. Julieta December 23, 2013 at 8:59 am Reply

    Are their ways to “artificially” keep us out of a recession when we in fact should be in one.

  17. Annice January 31, 2014 at 6:46 pm Reply

    Was McCain not a top GOP member when the country took a downward fall in the hands of GOP?
    If he was there when thing were going wrong and could not turn his friend/GOP/America around, how can he suddenly be elected by the same freinds/voters to make change?
    A change of friends/poor leadership to another poor leader who already led?
    Are most McCain voters really honest in trying to make America better?
    Are Mcain voters voting for experience that took America to recession, useless Iraq war, $10 trillion debt etc?
    What makes a voter /nation a clever/wise voter/nation?

  18. Mohammed February 2, 2014 at 8:50 pm Reply

    they have a great quality of life and a high HDI, but how much longer will that last?

  19. Jeffrey February 21, 2014 at 9:39 pm Reply

    …Depression?
    people that actually lived thru Recession or The Depression have a very different view when comparing it to what the Media is telling us today. Unemployment rate, mortgage and interest rate were off the charts.

  20. Eusebio February 22, 2014 at 4:47 am Reply

    I mean, if they weren’t well-known economic “viewpoints,” an economic conservative would look like someone who just stepped out of a time machine from 1850, and hasn’t learned any of the economic lessons since then. (In reality, of course, economic conservatives are people who simply default to 19th century economic thinking because they lack the education to know about modern economics, or people who stand to benefit financially by ignoring the necessity of modern economic structures.)

    Opposition to environmental standards and corporate regulations? Could be solved by a Googling of the “tragedy of the commons,” or by being awake when this is discussed in a basic econ class.

    Fear of the deficit during a recession and opposition to economic stimulus? Could be solved by a lesson on supply and demand (what happens when the government artificially increases demand during spiking unemployment?), or a history lesson on the Great Depression and the New Deal.

    Opposition to antitrust legislation and enforcement, and to labor unions? Could be solved with a lesson on competition, and on the relationship between costs, revenues, and profits – or a history lesson on Theodore Roosevelt and the railroad trusts, or Upton Sinclair and the labor movement.

    Is right-wing economics simply a symptom of the broken public education system in our country?

  21. Signe February 22, 2014 at 4:50 am Reply

    Michael Moore is making a movie about Capitalism, saying that it’s the reason why we’re in this economic recession. I’ve heard a lot of Americans tell me that Capitalism is flat out pure evil, greed, and needs to be done away with. Is Capitalism really the reason why we’re in this economic mess?

  22. Shelton March 17, 2014 at 3:30 am Reply

    And if yes at what time do you think we will be out of the recession?

  23. Garrett March 17, 2014 at 3:30 am Reply

    I need help in my history class. I’m supposed to “investigate” the 2008 economic recession.
    1. Which analysts predicted the current housing, banking, and economic crisis? Ex: Roubini and Talib
    2. Who did not think we were in any kind of crisis? Start with Greenspan and discuss two other top officials that were in denial.
    3. What triggered the current crisis? Explain three factors that contribute to this economic recession.
    4. How do we begin to cure this crisis?

    Thanks 🙂

  24. Zackary March 17, 2014 at 3:30 am Reply

    Aside from the Great Depression being the worst economic catastrophe in American history I wanted to know which recession was worse and why. Was it the 1982 Recession with skyrocketing inflation, the 1992 Recession with skyrocketing unemployment, or was it the 2008 Recession with a collapsing Housing Market? Thanks

  25. Lenard March 19, 2014 at 5:40 pm Reply

    Why did the U.S go to war with Spain, and why was is significant?

  26. Collette May 21, 2014 at 4:25 pm Reply

    “The American farmer has rarely been prosperous. Depression and hopelessness generally settled on the farmer before they reached other economic groups and remained there the longest” How true is this generalization for the period since the Civil War?

  27. Keith May 31, 2014 at 5:48 am Reply

    Anyone know anything about the economy during this time and how kennedy may have effected it? Thanks 🙂

  28. Tressa June 10, 2014 at 7:03 pm Reply

    Notable democrats who have gotten us out of hard economic times: Grover Cleveland, Woodrow Wilson, Franklin Roosevelt, Bill Clinton, Barack Obama

  29. Sonja June 10, 2014 at 7:03 pm Reply

    The cause of today’s economic situation is unrelated to the Bush tax cuts.

    In fact people would be even worse off if the government would have taken a few more trillion dollars away from us.
    Sirhard: Thats not logical. The two are not related.

  30. Vernon June 10, 2014 at 7:03 pm Reply

    Ok guys I need your help!!
    Im doing a project on the recession in Ireland 2011.
    I need answers to the following questions please:
    1)Why is Ireland in a recession?
    2)What did Ireland do to get into a recession?
    3)Why is there an economic crisis?
    4)What should our government do to get out of this recession?

    Thanks guys!!
    Any help would be very much appreciated! 😀

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