Thomas Hobbes, an English philosopher, created the first recorded explanation of the need for a universal Social Contract in his 1652 book Leviathan based on the general misery within society during this period. ===Great Depression of 1837=== This depression is acknowledged to be a worse Great Depression than the later Great Depression of the 1930s.
As with most great depressions, it was followed by a thirty-year period of a booming economy in the United States, which is now called the Second Industrial Revolution (of the 1850s). ===Panic of 1837=== The Panic of 1837 was an American financial crisis, built on a speculative real estate market.
The bubble burst on 10 May 1837 in New York City, when every bank stopped payment in gold and silver coinage.
As with most great depressions, it was followed by a thirty-year period of a booming economy in the United States, which is now called the Second Industrial Revolution (of the 1850s). ===Panic of 1837=== The Panic of 1837 was an American financial crisis, built on a speculative real estate market.
The term was frequently used for regional crises from the early 19th century until the 1930s, and for the more widespread crises of the 1870s and 1930s, but economic crises since 1945 have generally been referred to as "recessions", with the 1970s global crisis referred to as "stagflation", but not a depression.
Also, the Spanish flu pandemic of 1918–20 brought economic activity to a standstill as even more people became incapacitated.
Most developed countries had mostly recovered by 1921–22, however Germany saw its economy crippled until 1923–24 because of the hyperinflation crisis. The 1973 oil crisis, coupled with the rising costs of maintenance of welfare state in most countries led to a recession between 1973 and 1975, followed by a period of almost minimal growth and rising inflation and unemployment.
Most developed countries had mostly recovered by 1921–22, however Germany saw its economy crippled until 1923–24 because of the hyperinflation crisis. The 1973 oil crisis, coupled with the rising costs of maintenance of welfare state in most countries led to a recession between 1973 and 1975, followed by a period of almost minimal growth and rising inflation and unemployment.
Using the second definition of depression, most economists refer to the Great Depression, as the period between 1929 and 1941.
On the other hand, using the first definition, the depression that started in August 1929 lasted until March 1933.
The first between August 1929 and March 1933 and the second starting in May 1937 and ending in June 1938. ==Terminology== Today the term "depression" is most often associated with the Great Depression of the 1930s, but the term had been in use long before then.
This depression is generally considered to have begun with the Wall Street Crash of 1929, and the crisis quickly spread to other national economies.
Between 1929 and 1933, the gross national product of the United States decreased by 33% while the rate of unemployment increased to 25% (with industrial unemployment alone rising to approximately 35% – U.S.
The first between August 1929 and March 1933 and the second starting in May 1937 and ending in June 1938. ==Terminology== Today the term "depression" is most often associated with the Great Depression of the 1930s, but the term had been in use long before then.
The term was frequently used for regional crises from the early 19th century until the 1930s, and for the more widespread crises of the 1870s and 1930s, but economic crises since 1945 have generally been referred to as "recessions", with the 1970s global crisis referred to as "stagflation", but not a depression.
Thomas Hobbes, an English philosopher, created the first recorded explanation of the need for a universal Social Contract in his 1652 book Leviathan based on the general misery within society during this period. ===Great Depression of 1837=== This depression is acknowledged to be a worse Great Depression than the later Great Depression of the 1930s.
Many who lived through it regarded it to have been worse than the 1930s depression at times.
It was known as "the Great Depression" until the 1930s. ===Great Depression=== The Great Depression of the 1930s affected most national economies in the world.
On the other hand, using the first definition, the depression that started in August 1929 lasted until March 1933.
The first between August 1929 and March 1933 and the second starting in May 1937 and ending in June 1938. ==Terminology== Today the term "depression" is most often associated with the Great Depression of the 1930s, but the term had been in use long before then.
Between 1929 and 1933, the gross national product of the United States decreased by 33% while the rate of unemployment increased to 25% (with industrial unemployment alone rising to approximately 35% – U.S.
The first between August 1929 and March 1933 and the second starting in May 1937 and ending in June 1938. ==Terminology== Today the term "depression" is most often associated with the Great Depression of the 1930s, but the term had been in use long before then.
The first between August 1929 and March 1933 and the second starting in May 1937 and ending in June 1938. ==Terminology== Today the term "depression" is most often associated with the Great Depression of the 1930s, but the term had been in use long before then.
Using the second definition of depression, most economists refer to the Great Depression, as the period between 1929 and 1941.
The term was frequently used for regional crises from the early 19th century until the 1930s, and for the more widespread crises of the 1870s and 1930s, but economic crises since 1945 have generally been referred to as "recessions", with the 1970s global crisis referred to as "stagflation", but not a depression.
The term was frequently used for regional crises from the early 19th century until the 1930s, and for the more widespread crises of the 1870s and 1930s, but economic crises since 1945 have generally been referred to as "recessions", with the 1970s global crisis referred to as "stagflation", but not a depression.
Most developed countries had mostly recovered by 1921–22, however Germany saw its economy crippled until 1923–24 because of the hyperinflation crisis. The 1973 oil crisis, coupled with the rising costs of maintenance of welfare state in most countries led to a recession between 1973 and 1975, followed by a period of almost minimal growth and rising inflation and unemployment.
Most developed countries had mostly recovered by 1921–22, however Germany saw its economy crippled until 1923–24 because of the hyperinflation crisis. The 1973 oil crisis, coupled with the rising costs of maintenance of welfare state in most countries led to a recession between 1973 and 1975, followed by a period of almost minimal growth and rising inflation and unemployment.
The 1980–82 recession marked the end of the period. The savings & loans and the leveraged buyout crises led to a severe depression in mid-to-late 1989, causing a recession in 1990–91 (also fueled by the oil price crisis), whose effects lasted as late as 1994.
This, in turn, provoked the failure of many prominent financial institutions throughout 2008, most notably Lehman Brothers, leading to the loss of millions of jobs. ===Regional=== Several Latin American countries had severe downturns in the 1980s: by the Kehoe and Prescott definition of a great depression as at least one year with output 20% below trend, Argentina, Brazil, Chile, and Mexico experienced great depressions in the 1980s, and Argentina experienced another in 1998–2002.
However, the depression was multicausal, with its severity compounded by a coincidence of multiple sudden external shocks, including loss of Soviet trade, the savings and loan crisis and early 1990s recession in the West, with the internal overheating that had been brewing throughout the 1980s.
The 1980–82 recession marked the end of the period. The savings & loans and the leveraged buyout crises led to a severe depression in mid-to-late 1989, causing a recession in 1990–91 (also fueled by the oil price crisis), whose effects lasted as late as 1994.
Some populations are still poorer today than they were in 1989 (e.g.
The 1980–82 recession marked the end of the period. The savings & loans and the leveraged buyout crises led to a severe depression in mid-to-late 1989, causing a recession in 1990–91 (also fueled by the oil price crisis), whose effects lasted as late as 1994.
This downturn is more remembered for its political effects: British Prime Minister Margaret Thatcher had to resign in November 1990 as a result of the socioeconomic debacle caused by her later policies; and while his approval ratings were above 60%, U.S.
Average standards of living registered a catastrophic fall in the early 1990s in many parts of the former Eastern Bloc, most notably in post-Soviet states.
Even before Russia's financial crisis of 1998, Russia's GDP was half of what it had been in the early 1990s.
The collapse of the Soviet planned economy and the transition to market economy resulted in catastrophic declines in GDP of about 45% during the 1990–1996 period and poverty in the region had increased more than tenfold. Finnish economists refer to the Finnish economic decline around the breakup of the Soviet Union (1989–1994) as a great depression (suuri lama).
However, the depression was multicausal, with its severity compounded by a coincidence of multiple sudden external shocks, including loss of Soviet trade, the savings and loan crisis and early 1990s recession in the West, with the internal overheating that had been brewing throughout the 1980s.
Bush lost the 1992 election to Bill Clinton because of the domestic malady marked by the depression and increasing urban decay. In 2005, the persistent oil price rises and economic overheating caused by deregulation led to a gradual deterioration of the world economy with inflation and unemployment rising as growth slowed: The [bubble] in the U.S.
The 1980–82 recession marked the end of the period. The savings & loans and the leveraged buyout crises led to a severe depression in mid-to-late 1989, causing a recession in 1990–91 (also fueled by the oil price crisis), whose effects lasted as late as 1994.
This, in turn, provoked the failure of many prominent financial institutions throughout 2008, most notably Lehman Brothers, leading to the loss of millions of jobs. ===Regional=== Several Latin American countries had severe downturns in the 1980s: by the Kehoe and Prescott definition of a great depression as at least one year with output 20% below trend, Argentina, Brazil, Chile, and Mexico experienced great depressions in the 1980s, and Argentina experienced another in 1998–2002.
Even before Russia's financial crisis of 1998, Russia's GDP was half of what it had been in the early 1990s.
The depression had lasting effects: the Finnish markka was floated and was eventually replaced by the euro in 1999, ending decades of government control of the economy, but also high, persistent unemployment.
Bush lost the 1992 election to Bill Clinton because of the domestic malady marked by the depression and increasing urban decay. In 2005, the persistent oil price rises and economic overheating caused by deregulation led to a gradual deterioration of the world economy with inflation and unemployment rising as growth slowed: The [bubble] in the U.S.
burst in 2007, and the American economy slipped into a recession.
The 2008–2009 economic cycle, which has comprised the most significant global crisis since the Great Depression, has at times been termed a depression, but this terminology is not widely used, with the episode instead being referred to by other terms, such as the "Great Recession". == Notable depressions == ===The General Crisis of 1640=== The largest Great Depression of all time occurred during the General Crisis.
This, in turn, provoked the failure of many prominent financial institutions throughout 2008, most notably Lehman Brothers, leading to the loss of millions of jobs. ===Regional=== Several Latin American countries had severe downturns in the 1980s: by the Kehoe and Prescott definition of a great depression as at least one year with output 20% below trend, Argentina, Brazil, Chile, and Mexico experienced great depressions in the 1980s, and Argentina experienced another in 1998–2002.
employment was still over 25% agricultural). A long-term effect of the Great Depression was the departure of every major currency from the gold standard, although the initial impetus for this was World War II (see Bretton Woods Accord). ===Greek Depression=== Beginning in 2009, Greece sank into a recession that, after two years, became a depression.
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