Timeline
USA Economic Recessions Throughout History
The USA has suffered recessions, stock market crashes and credit crunches throughout it’s history. Here are some of the major economic events so far……
1920’s
A prosperous decade for many. Americans speculated wildly on stocks, overextending themselves by buying securities ‘on margin’ (ie credit). So many shares had been bought on margin, that much of it amounted to little more that paper. As production soared, consumer spending power failed to keep pace. The result was overproduction. Goods piled up and prices fell, industry began laying off workers. As more workers were laid off, the market place grew smaller and smaller.
1929 Stock Market Crash
The crash came about due to careless credit based investment and increased industrial output in a shrinking market for industrial goods. After 1929 recession followed.
1930’s
The Great Depression.
Global economies collapse. Many Americans face hunger and poverty.
1970s’
Oil Crisis, stagflation and Vietnam
The 70s was the era of stagflation, with 12% inflation requiring higher interest rates and cuts in government spending. Unemployment hit 9% in a recession lasting 16 months between 1973 and 1975.
1980’s
A recession occurred at the start of Ronald Reagan’s presidency, when the chairman of the Fed, Paul Volcker , was determined to beat inflation once and for all. Interest rates rose to almost 20%, turning large chunks of America’s industrial heartland into a rustbelt.
October 19th 1987 Black Monday
The largest single day drop in the Dow Jones Industrial Average index.