List of recessions in the United States

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Great Depression: United States GDP annual pattern and long-term trend, 1920–40, in billions of constant dollars[1]

This is a list of recessions that have affected the United States. Though a recession is popularly defined as two quarters of negative GDP growth, the beginning and ending dates of U.S. recessions are officially determined by the National Bureau of Economic Research (NBER).[2] The NBER defines a recession as, "...a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales."[3] From 1945-2007 the NBER has identified 11 recessions;[4] their average duration was 10 months (peak to trough).[5]

Most of the recessions listed here have affected economies on a worldwide scale; some of them are the Great Depression, the late 1980s recession, and the early 2000s recession. Recessions in one country are often grouped together with recessions in other countries that are related, and they commonly share a focal point as the cause of the recession.[6]

Note that before detailed economic statistics began to be gathered in the nineteenth century, it was difficult to tell when recessions occurred.[7] In spite of this, it is possible to estimate when economic recessions began because they were typically caused by external actions on the economic system such as wars and variations in the weather.[8]

Contents

[edit] Recessions and other Economic Crises

Name Dates Duration Time since start of previous entry Causes References
Panic of 1797 1797–1800 &0000000000000003.0000003 years – The effects of the deflation of the Bank of England crossed the Atlantic Ocean to North America and disrupted commercial and real estate markets in the United States and the Caribbean. Britain's economy was greatly affected by developing disflationary repercussions because it was fighting France in the French Revolutionary Wars at the time. [5][9]
Depression of 1807 1807–1814 &0000000000000007.0000007 years &0000000000000010.00000010 years The Embargo Act of 1807 was passed by the United States Congress under President Thomas Jefferson. It devastated shipping-related industries. The Federalists fought the embargo and allowed smuggling to take place in New England. [5][10][11]
Panic of 1819 1819–1824 &0000000000000005.0000005 years &0000000000000012.00000012 years The first major financial crisis in the United States featured widespread foreclosures, bank failures, unemployment, and a slump in agriculture and manufacturing. It also marked the end of the economic expansion that followed the War of 1812. [5][12][13]
Panic of 1837 1837–1843 &0000000000000006.0000006 years &0000000000000018.00000018 years A sharp downturn in the American economy was caused by bank failures and lack of confidence in the paper currency. Speculation markets were greatly affected when American banks stopped payment in specie (gold and silver coinage). [5][14]
Panic of 1857 1857–1860 &0000000000000003.0000003 years &0000000000000020.00000020 years Failure of the Ohio Life Insurance and Trust Company burst a European speculative bubble in United States railroads and caused a loss of confidence in American banks. Over 5,000 businesses failed within the first year of the Panic, and unemployment was accompanied by protest meetings in urban areas. [5][15]
Panic of 1873 1873–1879 &0000000000000006.0000006 years &0000000000000016.00000016 years Economic problems in Europe prompted the failure of the Jay Cooke & Company, the largest bank in the United States, which burst the post-Civil War speculative bubble. The Coinage Act of 1873 also contributed by immediately depressing the price of silver, which hurt North American mining interests. [5][16]
Long Depression 1873–1896 &0000000000000023.00000023 years – The collapse of the Vienna Stock Exchange caused a depression that spread throughout the world. It is important to note that during this period, the global industrial production greatly increased. In the United States, for example, industrial output increased fourfold. [5][17]
Panic of 1893 1893–1896 &0000000000000003.0000003 years &0000000000000020.00000020 years Failure of the United States Reading Railroad and withdrawal of European investment led to a stock market and banking collapse. This Panic was also precipitated in part by a run on the gold supply. [5][18]
Panic of 1907 1907–1908 &0000000000000001.0000001 year &0000000000000014.00000014 years A run on Knickerbocker Trust Company deposits on October 22, 1907, set events in motion that would lead to a severe monetary contraction. [5][19]
Post-World War I recession 1918–1921 &0000000000000003.0000003 years &0000000000000011.00000011 years Severe hyperinflation in Europe took place over production in North America. It was a brief but very sharp recession and was caused by the end of wartime production, along with an influx of labor from returning troops. This in turn caused high unemployment. [5][20]
Great Depression 1929–1933 &0000000000000043.00000043 months &0000000000000021.00000021 months Stock markets crashed worldwide, and a banking collapse took place in the United States. Although sometimes dated as lasting until the Second World War, the US economy was growing again by 1933, and technically the U.S. was not in recession from 1933 to 1937 [5][21]
Recession of 1937 1937–1938 &0000000000000013.00000013 months &0000000000000050.00000050 months The Recession of 1937 is only considered minor when compared to the Great Depression, but is otherwise among the worst recessions of the 20th century. [22]
Recession of 1945 Feb-Oct 1945 &0000000000000008.0000008 months &0000000000000080.00000080 months The decline in government spending at the end of World War II led to an enormous drop in Gross Domestic Product making this technically a recession. The Post War years were unusual in a number of ways and this era has little in common with other recessions. [23]
Recession of 1948 Nov 1948–Oct 1949 &0000000000000011.00000011 months &0000000000000037.00000037 months The 1948 recession was a relatively brief cyclical economic downturn, the mildness of which led to confidence in the notion that the Post War-era would be a period of stronger growth. [24]
Recession of 1953 July 1953–May 1954 &0000000000000010.00000010 months &0000000000000045.00000045 months After a post-Korean War inflationary period, more funds were transferred into national security. The Federal Reserve changed monetary policy to be more restrictive in 1952 due to fears of further inflation. [5][25][26]
Recession of 1958 Aug 1957–April 1958 &0000000000000008.0000008 months &0000000000000039.00000039 months Monetary policy was tightened during the two years preceding 1957, followed by an easing of policy at the end of 1957. The budget balance resulted in a change in budget surplus of 0.8% of GDP in 1957 to a budget deficit of 0.6% of GDP in 1958, and then to 2.6% of GDP in 1959. [5][27]
Recession of 1960-1 April 1960–Feb 1961 &0000000000000010.00000010 months &0000000000000024.00000024 months After President Kennedy's 30 January 1961 call for increased government spending to improve the Gross National Product and to reduce unemployment, the 1960-61 recession ended in February.[28]
Recession of 1969-70 Dec 1969–Nov 1970 &0000000000000011.00000011 months &0000000000000106.000000106 months The relatively mild 1969 recession is thought to have been mostly caused by the Federal Reserve raising interest rates to hold down inflation. [5]
1973 oil crisis

1973–1974 stock market crash

 Nov. 1973– March 1975 &0000000000000016.00000016 months &0000000000000036.00000036 months A quadrupling of oil prices by OPEC coupled with high government spending due to the Vietnam War led to stagflation in the United States. [5][29]
1980 recession Jan-July 1980 &0000000000000006.0000006 months &0000000000000058.00000058 months The NBER considers a short recession to have occurred in 1980, followed by a short period of growth and then a deep recession. Unemployment remained relatively elevated in between recessions. The early '80s are sometimes referred to as a "double dip" or "w-shaped" recession. [5]
Early 1980s recession July 1981–Nov 1982 &0000000000000016.00000016 months &0000000000000012.00000012 months The Iranian Revolution sharply increased the price of oil around the world in 1979, causing the 1979 energy crisis. This was caused by the new regime in power in Iran, which exported oil at inconsistent intervals and at a lower volume, forcing prices to go up. Tight monetary policy in the United States to control inflation led to another recession. The changes were made largely because of inflation that was carried over from the previous decade due to the 1973 oil crisis and the 1979 energy crisis. [5][30][31]
Early 1990s recession July 1990–March 1991 &0000000000000008.0000008 months &0000000000000092.00000092 months Industrial production and manufacturing-trade sales increased in early 1991. [5][32]
Early 2000s recession Mar-Nov 2001 &0000000000000008.0000008 months &0000000000000120.000000120 months The collapse of the dot-com bubble, the September 11th attacks, and accounting scandals contributed to a relatively mild contraction in the North American economy. [5][33]
Late 2000s recession Dec 2007-current ongoing &0000000000000073.00000073 months The collapse of the housing market led to bank collapses in the US and Europe, causing the amount of available credit to be sharply curtailed, resulting in huge liquidity and solvency crises. In addition, record oil prices and food prices, stock markets crashed globally, and several high profile banking, automotive, and manufacturing giants collapsed in the United States [34][35]

[edit] References

  1. ^ Carter, Susan B. (2006-01-30). The Historical Statistics of the United States. Cambridge University Press. ISBN 0521817919. 
  2. ^ Hall, Robert (2003-10-21). "The NBER's Recession Dating Procedure". National Bureau of Economic Research. http://www.nber.org/cycles/recessions.html. Retrieved on 2008-02-29. 
  3. ^ [1]
  4. ^ [2]
  5. ^ a b c d e f g h i j k l m n o p q r s t "NBER Business Cycle Expansions and Contractions". NBER. http://www.nber.org/cycles.html. Retrieved on 2008-10-01. 
  6. ^ Pelaez, Carlos M. (2007-07-10). Global Recession Risk: Dollar Devaluation and the World Economy. Palgrave Macmillan. ISBN 0230521509. 
  7. ^ Brent Moulton (2003-12-10). "Comprehensive Revision of the National Income and Product Accounts 1929 through Second Quarter 2003". Bureau of Economic Analysis. http://www.bea.gov/newsreleases/national/nipa/2003/2003cr_newsrelease.htm. Retrieved on 2008-02-29. 
  8. ^ The Columbia Electronic Encyclopedia. Columbia University Press. 2007. 
  9. ^ Chew, Richard S. (2005-12). "Certain Victims of an International Contagion: The Panic of 1797 and the Hard Times of the Late 1790s in Baltimore". Journal of the Early Republic 25: 565. doi:10.1353/jer.2005.0069. 
  10. ^ Watkins, Thayer. "The Depression of 1807-1814 in the U.S.". San Jose State University Department of Economics. http://www.sjsu.edu/faculty/watkins/dep1807.htm. Retrieved on 2008-02-29. 
  11. ^ Newbold, Ken (2005-03-16). "Embargo Act Commentary". James Madison Center. http://www.jmu.edu/madison/center/main_pages/madison_archives/life/secretary/embargo2.htm. Retrieved on 2008-02-29. 
  12. ^ Morris, Richard B. (1987). The Forging of the Union, 1781-1789. Harpercollins Childrens Books. ISBN 0060914246. 
  13. ^ Rothbard, Murray N. (2007-04-10). Panic of 1819 Reactions and Policies. Ludwig von Mises Institute. ISBN 1933550082. 
  14. ^ Morris, Charles (1902). The Great Republic By the Master Historians- Volumes I,II,III,IV. R.S. Belcher. 
  15. ^ Huston, James L. (1987-12-01). The Panic of 1857 and the Coming of the Civil War. Louisiana State University Press. ISBN 0807124923. 
  16. ^ Foner, Eric (1990-01-10). A Short History of Reconstruction. Harper Perennial. ISBN 0060964316. 
  17. ^ Viner, Jacob (1945-05). "Clapham on the Bank of England". Economica 12 (46): 61–68. doi:10.2307/2549897. 
  18. ^ Appleton, D. (1903). Appletons' Annual Cyclopædia and Register of Important Events of the Year. University of Virginia. 
  19. ^ Bruner, Robert F. (2007-08-31). The Panic of 1907: Lessons Learned from the Market's Perfect Storm. Wiley. ISBN 047015263X. 
  20. ^ Goldberg, David J. (1999-01-15). Discontented America: The United States in the 1920s. The Johns Hopkins University Press. ISBN 0801860040. 
  21. ^ Rothbard, Murray N. (2000-06-15). America's Great Depression. Ludwig Von Mises Institute. ISBN 0945466056. 
  22. ^ http://www.nber.org/cycles/
  23. ^ http://www.nber.org/cycles/
  24. ^ http://www.nber.org/cycles/
  25. ^ Dell, S. (1957-06). "The United States Recession of 1953/54: A Comment". The Economic Journal 67 (266): 338–339. doi:10.2307/2227810. 
  26. ^ Holmans, A. E. (1958-02). "The Eisenhower Administration and the Recession, 1953-5". Oxford Economic Papers 10 (1): 34–54. 
  27. ^ Labonte, Marc (2002-01-10). "The Current Economic Recession". Congressional Research Service. http://www.fpc.state.gov/documents/organization/7962.pdf. Retrieved on 2008-03-05. 
  28. ^ Cole, Donald B.. Handbook of American History. p. 254. 
  29. ^ Merrill, Karen R. (2007-02-22). The Oil Crisis of 1973-1974: A Brief History with Documents. Bedford/St. Martin's. ISBN 0312409222. 
  30. ^ "Oil Squeeze". TIME. 1979-02-05. http://www.time.com/time/magazine/article/0,9171,946222,00.html. Retrieved on 2008-02-29. 
  31. ^ Rattner, Steven (1981-01-05). "Federal Reserve sees little growth in '81 with continued high rates". New York Times. http://select.nytimes.com/gst/abstract.html?res=FA0F13FE3C5F0C768CDDA80894D9484D81&scp=1&sq=Federal+Reserve+Sees+Little+Growth+in+%2781+With+Continued+High+Rates&st=nyt. Retrieved on 2008-02-29. 
  32. ^ "NBER Business Cycle Dating Committee Determines that Recession Ended in March 1991". NBER. http://www.nber.org/March91.html. Retrieved on 2008-03-04. 
  33. ^ Henderson, Neil (2004-01-22). "Economists Say Recession Started in 2000". The Washington Post. http://www.washingtonpost.com/ac2/wp-dyn/A38826-2004Jan22?language=printer. Retrieved on 2008-02-29. 
  34. ^ Grynbaum, Michael M.; David Jolly (2008-12-01). "[http://www.nytimes.com/2008/12/02/business/02markets.html It’s Official: Recession Started One Year Ago By MICHAEL M. GRYNBAUM and DAVID JOLLY Published: December 1, 2008]". The New York Times. http://www.nytimes.com/2008/12/02/business/02markets.html. Retrieved on 2008-12-01. 
  35. ^ http://www.msnbc.msn.com/id/27999557/

[edit] Further reading

  • Dow, Christopher (2000-11-30). Major Recessions: Britain and the World, 1920-1995. United States: Oxford University Press. ISBN 0199241236. 
  • Knoop, Todd A. (2004-07-30). Recessions and Depressions: Understanding Business Cycles. Praeger Publishers. ISBN 0275981622. 

[edit] External links

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