Recessions in the Past – History facts

Posted by Sven

March 15, 2009

The Great Depression(1928) - History repeating?

The United States’ current economic situation has many citizens of all walks of life, looking back at the country’s history of recessions experienced, for some answers. Recessions are determined by the GDP (Gross Domestic Product), which is tracked by the Commerce Department’s Bureau of Economic Analysis.

A recession occurs when the GDP declines along with employment, investment or corporate profits. Since the Great Depression of 1929, the US has survived more than ten recessions. These recessions were of varying length and intensity. The most intense of these past recessions, beginning with the Great Depression, are:

The Great Depression – The Great Depression is the longest recession the United States has had to date. Beginning in 1929 with the stock market crash, it lasted for 43 months. The banking collapse in the US at the beginning of the Great Depression caused a global recession. Unfortunately, before the economy was fully recovered, the US was hit with another small recession in 1937.

1973 Oil Crisis – Although the 1973 Oil Crisis recession only lasted 16 months, it had a huge impact on the US economy. The world was taught a lesson when the Middle East closed their oil tap to the world. As oil prices quadrupled, US government spending was higher than normal to support the Vietnam War. Rising prices and increasing unemployment led to staggering inflation in the United States.

1979 Energy Crisis – This recession was due to the Iranian revolution. Once again, the price of oil increased from $15.85 over the following 12 months period to a shocking $39.50, the highest price for oil until the beginning of March 2008.

Great Commodities Depression – The Great Commodities Depression marks a twenty-year period in our economic history (1980-2000) when the price of commodities (raw materials) had an extended decline.

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