On Nov 25, 1:25 pm, Dave "Hawke, the DNC Propogandist" Smithers
The History of Recessions in the United States
By Kimberly Amadeo, About.com Guide
Sep 24 2011
The history of recessions in the United States since the Great
Depression show they are a natural, though painful, part of the
business cycle. Note: On July 31, 2009 the Bureau of Economic Analysis
BEA revised all GDP statistics from 1929. It has revised the most
recent three years each year since then. The most recent stats (July
29, 2011) are given below, with the original stats in parentheses.
2008-2009 Recession
[Bush 43 & Obama administrations]
The worst recession since the Depression. The economy shrank in five
quarters, including four quarters in a row. Two quarters shrank more
than 5%, and Q2 2008 shrank a whopping 8.9%, more than any other
recession since the Great Depression. The recession ended in Q3 2009,
when GDP turned positive, thanks to economic stimulus spending. The
recession was also the longest since the Depression, lasting 18
months.
2008
[Bush 43 administration]
•Q1 -1.8%(-.7%)
•Q2 1.3% (1.5%)
•Q3 -3.7% (-2.7%)
•Q4 -8.9% (-5.4%)
2009
•Q1 -6.7% (-6.4%)
•Q2 -.7% (-.7%)
The recession was caused by the Subprime Mortgage Crisis, which then
led to a global banking credit crisis.
[ Thank you Barney Frank!
[
[ Frank's fingerprints are all over the financial fiasco
[
http://useconomy.about.com/od/grossdomesticproduct/a/recession_histo.htm
2001 Recession
[Bush 43 administration]
It lasted eight months (March-November 2001). It was caused by the Y2K
scare, which created a boom and subsequent bust in Internet
businesses. It was aggravated by the 9/11 attack. The economy
contracted in two quarters: Q1 -1.3% (-.5%) and Q3 -1.1% (-1.4%).
Unemployment reached 5.7% during the recession, but rose even further
to 6% in June 2003. This often happens in recessions, as unemployment
is a lagging indicator. Most employers wait until they are sure the
economy is back on its feet again before hiring permanent employees.
1990-1991 Recession
[Bush 41 administration]
This recession was eight months (July 1990 to March 1991). It was
caused by the Savings and Loan Crisis in 1989. GDP was -3.5% (-3%) in
Q4 1990 and -1.9% (-2%) in Q1 1991.
1980-1982 Recession
[Carter ^ Reagan administrations]
This was technically two recessions: the first six months of 1980 and
16 months from July 1981 - November 1982. It was partially caused by
the Iranian oil embargo, which reduced U.S. oil supplies driving up
prices. The Fed raised interest rates to combat inflation, reducing
business spending. GDP was negative for six of the 12 quarters. The
worst was Q2 1980 at -7.9%(-7.8%), the worst quarterly decline since
the Great Depression (until the 2008-2009 recession). In Q1 1982, it
was nearly as bad, plummeting 6.4%. Unemployment rose to 10.8% in
November 1982, the highest level of unemployment in any recession. It
was above 10% for 10 months.
1973-1975 Recession
[Nixon & Ford administrations]
This recession lasted sixteen months (November 1973-March 1975). OPEC
is blamed for quadrupling prices for a few months in 1973. It alone
didn't cause such a deep recession. Several factors contributed.
First, the U.S. went off of the gold standard and printed more money.
This created inflation, as too many dollars chased too few goods.
Second, President Nixon instituted wage-price controls. This kept
prices too high, reducing demand. Wage controls made salaries too
high, which forced businesses to lay off workers. The result was
stagflation and three consecutive quarters of negative GDP growth:
1974 Q3 -3.9% (-3.8%), Q4 -1.6% (-1.6%), 1975 Q1 -4.8%(-4.7%).
Unemployment reached a peak of 9% in May 1975, two months after the
recession technically ended.
1970 Recession
[Nixon administration]
This recession was relatively mild, lasting 11 months. GDP was down
for two quarters:Q1 -.7%, Q2 .7%, Q3 3.6%, Q4 -4.2%. Unemployment
peaked at 6.1% in December 1970.
1960 Recession
[Kennedy administration]
Starting in April 1960, the recession lasted 10 months. GDP was -1.9%
(-2%) in Q2 and -5% (-5.1%) in Q4. Unemployment reached a peak of 7.1%
in May 1961.
Recession of 1957
[Eisenhower administration]
It was eight months (August 1957-April 1958). GDP was - 4.2% in Q4
1957 then immediately plummeted 10.4% in Q1 1958. Unemployment didn't
reach its peak of 7.1% until September 1958. It was caused by a
contractionary monetary policy.
Recession of 1953
[Eisenhower administration]
Beginning July 1953, this recession lasted 10 months, a result of the
end of the Korean War. Unemployment didn't reach its peak of 6.1%
until September 1954, two months after the recession ended. GDP was
down 6.2% in Q4 of 1953.
1949 Recession
[Truman administration]
This 11 month recession began in November 1948 and lasted until
October 1949, when unemployment reached a peak of 7.9%. GDP fell .5%
for the year. This was another natural down cycle, caused by the
economy adjusting to peace-time production.
1945 Recession
[Truman administration]
This recession lasted only eight months, between February and October
1945. However, it was nasty, with GDP plummeting 11% in 1946. This was
a natural result of the demobilization from WWII, as the huge demand
for military weapons were no longer needed. (Source: NBER, Business
Cycle Expansions and Contractions)
http://useconomy.about.com/od/grossdomesticproduct/a/recession_histo.htm
> Especially when you understand that the rest of the world isn't exactly
> booming these days either. Why is it the rest of the world is slowing
> down economically too? Is that Obama's doing too?
I don't know, Dave; is it?
> Even the strongest Obama supporters never expected as much from
> him as you seem to. and it is surprising to find that his worst opponents
> expected him to have us on the up side of an economic boom by now.
> I can see why you're disappointed. Simply stopping the train headed
> off the tracks, turning the country around, and moving ahead at a
> moderate pace, sure isn't a giant boom. I just never realized you
> Obama haters were expecting so damn much from him. Who knew?
Once again you mischaracterize me as an "Obama hater," when you know
damn well I just hate what he's doing to our country: turning it into
his idea of a Socialist Society.
"Communism is the last stages of the socialist revolution."
--Karl Marx and Friedrich Engels