The Long Depression was, by a large margin, the longest-lasting recession in U.S. history. It began in the U.S. with the Panic of 1873, and lasted for over five years. This depression was the largest in a series of recessions at the turn of the 20th century, which proved to be a period of overall stagnation as the U.S. financial markets failed to keep pace with industrialization and changes in monetary policy.
Great Depression
Decreasing severity
When comparing recessions before and after the Great Depression, they have generally become shorter and less frequent over time. Only three recessions in the latter period have lasted more than one year. Additionally, while there were 12 recessions between 1880 and 1920, there were only six recessions between 1980 and 2020. The most severe recession in recent years was the financial crisis of 2007 (known as the Great Recession), where irresponsible lending policies and lack of government regulation allowed for a property bubble to develop and become detached from the economy over time, this eventually became untenable and the bubble burst. Although the causes of both the Great Depression and Great Recession were similar in many aspects, economists have been able to use historical evidence to try and predict, prevent, or limit the impact of future recessions.
FAQs
The good news is that recessions generally haven't lasted very long. Our analysis of 11 cycles since 1950 shows that recessions have persisted between two and 18 months, with the average spanning about 10 months. For those directly affected by job loss or business closures, that can feel like an eternity.
Will the US be in a recession in 2024? ›
Is a recession coming in 2024? While it is difficult to predict a recession in advance, the current state of the economy makes the possibility of a recession appear more remote in 2024.
What was the longest recession in US history? ›
The Long Depression was, by a large margin, the longest-lasting recession in U.S. history. It began in the U.S. with the Panic of 1873, and lasted for over five years.
How long did the great recessions last? ›
According to the U.S. National Bureau of Economic Research (the official arbiter of U.S. recessions) the recession began in December 2007 and ended in June 2009, and thus extended over eighteen months.
What years did we have recessions? ›
Great Depression onward (1929–present)
| Name | Period Range | Duration |
|---|
| Recession of 1958 | August 1957 – April 1958 | 8 months |
| Recession of 1960–1961 | April 1960 – February 1961 | 10 months |
| Recession of 1969–1970 | December 1969 – November 1970 | 11 months |
| 1973–1975 recession | November 1973 – March 1975 | 1 year 4 months |
6 more rowsAccording to the International Monetary Fund (IMF), "Global recessions seem to occur over a cycle lasting between eight and 10 years." The IMF takes many factors into account when defining a global recession.
Will there be a recession in 2025 in the USA? ›
The research of the Federal Reserve Bank of New York, currently puts the probability of a U.S. recession before February 2025 at 58%, that's about as high as a forward-looking recession probability has been on this model since the 1980s.
Will the risk of recession may appear in 2024? ›
In its monthly review, the Finance Ministry has said that recession risks may reappear in 2024. The ministry's warning about a potential recession comes in the backdrop of current uncertainties linked to rising food and energy prices amidst geopolitical tensions.
How will the US economy be in 5 years? ›
Overall, despite an expected slowdown in the coming quarters, we expect the US economy to post real growth of 2.4% this year and 1.4% in 2025. Over the entire forecast, economic growth averages 1.8% per year, slightly higher than the long-term potential of 1.5% per year.
Is it good to buy property in a recession? ›
This decreased demand means less competition for homes on the market, which in turn means sellers who are more open to lowering their prices. So buying during a recession, if you are financially able to, may get you a better deal.
A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough.” Consistent with this definition, the Committee focuses on a comprehensive set of measures—including not only GDP, but also employment, income, sales, and industrial production—to analyze the trends in economic ...
What happens if the US economy collapses? ›
Banks considered stable may go under if a panic ensues. Another significant consequence of economic collapse is that currencies are devalued. This can lead to hyperinflation or a currency crisis, further devaluing money—namely, the U.S. Dollar. It also further devalues the currency.
When was the US economy at its worst? ›
In the United States, the Great Recession was a severe financial crisis combined with a deep recession. While the recession officially lasted from December 2007 to June 2009, it took many years for the economy to recover to pre-crisis levels of employment and output.
What was the worst depression in US history? ›
The Great Depression was the worst economic downturn in US history. It began in 1929 and did not abate until the end of the 1930s. The stock market crash of October 1929 signaled the beginning of the Great Depression. By 1933, unemployment was at 25 percent and more than 5,000 banks had gone out of business.
How long did it take the stock market to recover after the 2008 crash? ›
The bounce-back from the 2008 crash took five and a half years, but an additional half year to regain your purchasing power.
Is there a recession every 10 years? ›
Recessions seem to occur every decade or so in modern economies, and, more specifically, they seem to regularly follow periods of strong growth.
What was the worst recession in history? ›
In the United States, the Great Recession was a severe financial crisis combined with a deep recession. While the recession officially lasted from December 2007 to June 2009, it took many years for the economy to recover to pre-crisis levels of employment and output.
What is the recession period? ›
The NBER defines a recession as a period between a peak and a trough in the business cycle where there is a significant decline in economic activity spread across the economy that can last from a few months to more than a year.
How long does a recession last before it becomes a depression? ›
A depression is a dramatic and sustained downturn in economic activity, with symptoms including a sharp fall in economic growth, employment, and production. A depression can be defined as a recession that lasts longer than three years or that results in a decline of at least 10% in annual GDP.
