The Biggest Recessions in U.S. History
Biggest Recessions The US Has Faced
Recessions can really rock an economy, causing immense job loss in all income levels. There have been as many as 48 recessions in United States history, with some of them being real doozies.
While most recessions are said to only last about a year, there have been some that have dragged on for over three—causing devastating consequences for the American people.
Here are some of the worst recessions the United States has ever experienced, and what caused them.
The Panic Of 1785
1785-1788
The panic of 1785 is the earliest known recession in the US. It ended the business boom that followed the American Revolution.
It’s blamed on overexpansion and debts, a post war deflation, and competition in the manufacturing sector from Britain, as well as a lack of adequate credit and a sound currency.
The panic among business and propertied groups led to the demand for a stronger federal government
The Copper Panic Of 1789
1789-1793
While the American economy was still recovering from the Panic of 1785, the Copper Panic happened.
Due to a debasement and counterfeiting, a loss of confidence in copper coins led to a commercial freeze up that halted the economy of several northern states.
It lasted four years and was only alleviated with the introduction of new, paper money.
The Panic Of 1796
1796-1799
The American economy had a short break before hitting another recession in 1796. This time, deflation from the Bank of England crossed into North America and severely disrupted commercial and real estate markets—causing major financial panic.
This event is similar to the Great Recession that happened later between 2008 and 2009. Financial problems got worse and worse, affecting nearly everyone from investors to shopkeepers to laborers.
The 1802 Recession
1802-1804
A boom of wartime activity led to a decline after the Peace of Amiens ended the war between the United Kingdom and France. Commodity prices fell dramatically and trade was disrupted by pirates, leading to the First Barbary War.
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