Recessions are sometimes defined as two consecutive quarters of decline in real gross domestic product (GDP), which measures the combined value of all the goods and services produced in an economy.
In the U.S., the National Bureau of Economic Research (NBER) dates recessions based on indicators including GDP, payroll employment, personal income and spending, industrial production, and retail sales.
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| Blogger - writers are 'never responsible' for any recession !! |
The end of the Korean War unleashed a global investment boom marked by a surge in exports of U.S. capital goods. In the US, the inflation rate rose from 0.4% in March 1956 to 3.7% a year later.
Fiscal policy focused on limiting budget deficits produced a surplus of 0.7% of GDP in 1957.
The 1957 Asian Flu pandemic killed 70,000 to 100,000 Americans in 1957, and industrial production slumped late that year and early in 1958.
The dramatic drop in domestic demand and evolving consumer expectations led to the failure of the Ford Edsel, the beginning of the end for Detroit's auto industry dominance.
he sharp worldwide recession contributed to a foreign trade deficit. The recession ended after policymakers eased fiscal and monetary constraints on growth.
The "Rolling Adjustment" Recession: April 1960–February 1961
This relatively mild recession was named for the so-called "rolling adjustment" in U.S. industrial sectors tied to consumers' diminished demand for domestic autos amid growing competition from inexpensive imports.
Like most other recessions, it was preceded by higher interest rates, with the Fed increasing the federal funds rate from 1.75% in mid-1958 to 4% by the end of 1959.
Part 2 of Double-Dip Recession: July 1981–November 1982
Duration: 16 months
GDP Decline: 2.9%
Congressional Research Service. "The Current Economic Recession: How Long, How Deep, and How Different From the Past?"
Reasons and Causes: By the fourth quarter of 1980 inflation was up to 11.1%, prompting the Federal Reserve to raise the fed funds rate to 19% by July 1981. As the downturn worsened and joblessness climbed, Volcker resisted repeated demands in Congress to change course.
By October 1982 inflation had declined to 5%, while unemployment would remain above 10% until mid-1983. Most economists today accept Volcker's arguments at the time that failure to control inflation and restore the Fed's credibility would have led to continued economic under-performance.
Take a pause ... here we present some headlines that dominated media scenes ::
US Recession causes worldwide Slump -- 1992 (Political and Business Observer)
The Americans are coming - Time magazine - 1991
A Deficit of Guts - Time magazine 1990
This particular article said among other things:
"Although the deficit problem may seem familiar, even tiresome, it is more acute than ever: Administration estimates for this year have grown from $100 billion to $161 billion, largely because the economy is growing less quickly than anticipated.
Last week the Labor Department reported that civilian unemployment rose in June from 5.2% to 5.5%, the highest jobless level in almost two years. If, as many expect, the economy plunges into a full recession, the deficit could become even larger".
The article also said :
"But the biggest strike against the Democrats is their continued refusal to accept domestic-spending reductions."
In 1989, 'Time' magazine carried an article under the headline -- 'No joyride in 1989'
-- The article said: "This is the first time in perhaps six years that the word recession is in my vocabulary"
The write up also noted:
"Rising petroleum prices may contribute to the trend. Some economists believe crude oil will climb from its recent price of around $13 per bbl. to more than $15 this year because of the agreement made by the Organization of Petroleum Exporting Countries to cut production, which takes effect this month.
If OPEC members honor their agreement, which they have mostly failed to do in the past, they may be able to regain some influence over the market."
About Japan ... an article was captioned:
'Rising Sun under a Cloud'
ends
Economic situation then .... and now worrisome. The complexity in present day more. - Dr Abhi Abhijeet, Maharashtra
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