Recession of 1949

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The Recession of 1949 was a downturn in the United States lasting for 11 months. According to the National Bureau of Economic Research, the recession began in November 1948 and lasted until October 1949.[1]

The 1948 recession was a brief economic downturn; forecasters of the time expected much worse, perhaps influenced by the poor economy in their recent lifetime.[2] The recession began shortly after President Truman's "Fair Deal" economic reforms. The recession also followed a period of monetary tightening by the Federal Reserve.[3]

During the recession the GDP of US[edit]

During this recession, the Gross Domestic Product of the United States fell 1.7 percent. In October 1949, the unemployment rate reached its peak for the cycle of 7.9 percent.[4]

Main causes of the recession[edit]

Many regard World War II to be the main cause of the recession. According to C.A.Blyth "the most important cause of 1948-1949 recession was substantial fall in the fixed investments". *[1]

The severity of this recession[edit]

Maximum unemployment was about 7.9%. Change in Gross National Product GNP reduced by up to -1.5%. Department store sales fell 22%. The wholesale price and cost of living indexes fell 12 and 5 points.

References[edit]

  1. ^ "NBER Business Cycle Expansions and Contractions". NBER. Retrieved 2008-10-01. 
  2. ^ Zarnowitz, Victor (1996). Business Cycles: Theory, History, Indicators, and Forecasting. Chicago: University of Chicago Press. p. 416. ISBN 0-226-97891-5. 
  3. ^ Labonte, Marc (2002-01-10). "The Current Economic Recession". Congressional Research Service. Retrieved 2008-03-05. 
  4. ^ Labour Force Statistics from the Current Population Survey, Bureau of Labour Statistics. Retrieved on September 19, 2009

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