Recessions, economic downturns, and financial crises are not uncommon in the history of human civilization. In fact, recessions have occurred several times in the past, with some being more severe than others. However, amidst all the gloom and doom of economic downturns, there are some fun and fascinating facts that you might not have known. In this article, we will explore some of the most interesting and amusing facts about recessions in history.
- The word “recession” was first used in 1879 by a British economist named Arthur Cecil Pigou. He used the term to describe an economic downturn that occurred in the United Kingdom in the late 19th century. The word “recession” has since become the standard term used to describe a period of economic decline.
- The Great Depression, which lasted from 1929 to 1939, was the longest and most severe recession in modern history. During this time, the unemployment rate in the United States rose to nearly 25%, and many people lost their homes, businesses, and life savings.
- The United States has experienced 33 recessions since 1854, with the most recent being the COVID-19 pandemic-induced recession in 2020.
- The shortest recession in U.S. history occurred in 1980 and lasted just six months. This recession was caused by the Federal Reserve’s decision to raise interest rates to combat inflation.
- The longest economic expansion in U.S. history was from 1991 to 2001, lasting for ten years. During this time, the economy grew at an average annual rate of 3.6%.
- The Great Recession of 2008 was caused by a housing bubble and the subprime mortgage crisis. It was the most severe recession since the Great Depression and resulted in the loss of millions of jobs and trillions of dollars in wealth.
- Recessions can sometimes lead to interesting trends in consumer behavior. During the Great Depression, for example, people turned to more affordable forms of entertainment, such as listening to the radio and going to the movies. Sales of lipstick, however, increased as women looked for a small luxury to lift their spirits.
- The 1970s oil crisis was triggered by the Arab oil embargo, which was imposed in response to the United States’ support for Israel in the Yom Kippur War. The embargo led to a worldwide shortage of oil and a sharp increase in prices, which contributed to a global recession.
- During the 1980s, the term “yuppie” (short for “young urban professional”) became popular to describe young professionals who were seen as materialistic and obsessed with consumer culture. The term was coined in response to the economic boom of the time and the rise of a new generation of upwardly mobile workers.
- The dot-com bubble of the late 1990s and early 2000s was characterized by a speculative frenzy in technology stocks. The bubble burst in 2000, leading to a recession and the loss of trillions of dollars in market value.
- The Asian financial crisis of 1997 was triggered by a currency crisis in Thailand, which spread to other countries in the region. The crisis led to a sharp decline in economic growth and the collapse of several major financial institutions.
- During the Great Depression, the U.S. government implemented a program called the Civilian Conservation Corps, which employed young men to work on environmental projects such as planting trees and building hiking trails. The program provided much-needed employment for millions of Americans and helped to conserve natural resources.
Want to learn more about recessions? Follow PickiloApp on Twitter.