Economic Recession- Comprehensive Insight in the History
There has been much hurly-burly about economic recession in the past few months. The big and small corporate companies and common men have all faced the effects of the credit crunch. This article gives you an insight in the history of recession in the United States.
According to the economy experts, there have been around 32 precise cycles of expansion and contraction in the history of US recession which dates back to 1854. Keeping this figure in mind, it can be concluded that there have been around 32 economic recessions in about a period of over 150 years.
Further examining these 35 cycles of expansion and contraction, it can be noted that there have been approximate 38 months of expansion that has been followed by nearly 17 months of contraction. It can be concluded that the economic recession in the recent times have been fewer and comparatively much shorter in duration. Here is a detailed analysis on the different periods of economic recession in United States over a period of 150 years.
? January 1980 to July 1980 (6 months)
? July 1981 to November 1982 (16 months)
? July 1990 to March 1991 (8 months)
? March 2001 to November 2001 (8 months)
? December 2007 to current
Economic recession is generally followed by a steep decline in the nation’s GDP. It affects the stock market, causing it to go down. The common man suffers due to increased layoffs in the companies; less number of job opportunities in the market; and rise in the price of oil.
The NBER (National Bureau of Economic Research) decision for the past three recessions has confirmed to the definition of taking into account two quarters of decline to identify recession. Though the recession of 2001, didn’t involve the proposed two quarter decline model, it was also preceded by a two quarters of irregular decline and weak economic growth.
The only problem is, we have been in recession since the 2008 melt down, and the outcome of comimg out is still not in site.