The Most Serious "Post Great Depression" Recession

[icebreaker]

Let's turn back the clock and go back in time. What is this early 1980's US Recession all about?



This is a brief but the most serious recession in 1980-1982 that struck the US after the great depression in the country in 1929 to early 1930's. During this period, there was a downturn in the housing, steel manufacturing and automobile production and unemployment rate was also high. The root cause of this recession was a contractionary monetary policy which is a monetary policy, established by the Federal Reserve System, that seeks to reduce the size of the money supply to control high inflation.

This economic crisis had a severe effect on financial institutions such as savings and loans and banking industry. The American banking system had been significantly weakened by the severe recession and the effects of deregulation.

At the recovery stage from 1983-1984, some of the most dramatic improvements came in industries hardest hit by the recession, such as paper and forest products, rubber, airlines, and the auto industry. Unemployment rate also gradually improved at the later part of 1982. An economic recovery occurred due to the combination of decreasing the interest rates and deficit spending.

[Adeel Sami]

Much interesting, Mr. Admin ..
I'm weak in recalling history but everyone should've to remember the incidents of history that what were the faults which led us to the collapse of politics as well as economics ..

[Bernardcraig20]

Thanks for the informaiton! Looking forward for more updates!