A Look At The Longest Economic Recession In America

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Brian Carroll

Yes, the history of recessions in the United States shows that they are a natural, though painful, part of the business cycle. The National Bureau of Economic Research determines when a recession starts and ends.

From 1919 to 1945, there were six cycles; recessions lasted an average of 18 months and expansions for 35. From 1945 to 2001, and 10 cycles, recessions lasted an average of 10 months and expansions an average of 57 months. This has prompted some economists to declare that the business cycle has become less severe.

Another aspect:

Lasting from 1929 until 1938, it was the biggest economic crisis in U.S. history. Unemployment reached 25 percent in 1933 and remained at 19 percent in 1938. The Depression ended because of three things: the New Deal, the end of the drought that caused the Dust Bowl, and increased spending for World War II.

The Great Recession that led to the Great Depression:

The Great Recession—which officially lasted from December 2007 to June 2009—began with the bursting of an 8 trillion dollar housing bubble. The resulting loss of wealth led to sharp cutbacks in consumer spending. … This was the most dramatic employment contraction (by far) of any recession since the Great Depression.

Causes of great recession:

Major causes of the initial subprime mortgage crisis and following recession include International trade imbalances and lax lending standards contributing to high levels of developed country household debt and real-estate bubbles that have since burst; U.S. government housing policies; and limited regulation of non-depository financial institutions. Once the recession began, various responses were attempted with different degrees of success. These included fiscal policies of governments; monetary policies of central banks; measures designed to help indebted consumers refinance their mortgage debt; and inconsistent approaches used by nations to bail out troubled banking industries and private bondholders, assuming private debt burdens or socializing losses.

Perception and longer-term effects:

While many argue different period to be the greater recession in American History, it is up to you to think which period suffered the longest recession. Most people argue that the great recession in America was in 2009. Whatever the Year is, once the Great Recession was over in the United States, among many people in America and in other countries around the world, the effects of the downturn were felt for many more years.

About the Author

Brian Carroll

Brian Carroll is well known in his field and is working at Moravian College, PA currently. In addition to it, he also worked at Uconn, Salem State University, North Shore Community College and few others.

A Look At The Longest Economic Recession In AmericaunratedBrian Carroll2019-01-29 06:34:44Yes, the history of recessions in the United States shows that they are a natural, though painful, part of the business cycle. The National Bureau of …

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