Top 5 Recessions of the 20th and the 21st Century

For the past 100 years, US have experienced a number of economic recessions. Some of these recessions have been felt for a short while as the country has rebounded really fast. On the other hand, there are recessions whose ripples weren’t only felt in this country but also in different countries. We chronicled the top five recessions in the US, their duration and effects as well as the believed causes of these recessions.

The Great Depression (1929 – 1939) – for 10 years the country has experienced an economic turmoil like no other. Historic unemployment rate has been posted during those years and hunger is common around the country. The reason for this is the crash of the stock market worldwide. The crash caused different banks in the country to collapse. What made it worst is a second recession within the recession period that started in 1937.

Recession of 1953 (1953 - 1954) – another war related recession, this recession was triggered by the overspending of the government in national security and defense. Inflation started to blow-up as soon as the Korean War is over. The government somehow panicked and spent too much in national security. A year before that, the Federal Reserve tried restricts some policies to ensure that inflation will be control but to no avail. Fortunately, recession and its effects only lasted for a year and the country has bounced back.

1973 Oil Crises (1973 – 1975) – it was the time of Vietnam War and people were not only feeling the pangs of war but also in the economy. The oil prices quadrupled in that short time frame. It was also during those years that the country has been spending too much money on national security and for the Vietnam War. These two reasons alone has triggered the country’s recession which took three years to complete.

Recession of 1980 (1980 – 1982) – this recession is actually an after effect of the mid 70s oil crises (see number 3). Because of the rising gas prices, the country is now facing energy crises as the effect of the gas problem. During these years Iran became a powerful country as it holds a good amount of fuel. But their inconsistent export of fuel has led to the uncertainty of supplies. Naturally the prices went up and the effects on US are devastating economically. Also part of the cause of recession was the Federal Reserve’s tight control of monetary policy.

The 21st Century Recession (2001 – 2003) – although its effects were not widely felt, this type of recession has set the pace of different situations today. The internet bubble was at its peak, it was also the time for 9/11 attack which spurred the country’s spending in national security. The accounting scandals of 2002 were also pointed out as the cause of this two-year recession.

These are some of the recessions that happened in the country for the past 100 years. These recessions has given the country extensive lessons that could be used today and in the future.