The Recession of 1958, also known as the Eisenhower Recession, was a sharp worldwide economic downturn in 1958.The effect of the recession spread beyond United States borders to Europe and Canada, causing many businesses to shut down. It was the most significant recession during the post-World War II boom between 1945 and 1970 and had a sharp economic decline that only lasted eight months. By the time recovery began in May 1958, most lost ground had been regained. As 1958 ended, the economy was heading towards new high levels of employment and production. Overall, the recession was regarded as a moderate one based on the duration and extent of declines in employment, production, and income.
In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending. This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. In the United States, it is defined as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales". In the United Kingdom, it is defined as a negative economic growth for two consecutive quarters.
World War II, also known as the Second World War, was a global war that lasted from 1939 to 1945. The vast majority of the world's countries—including all the great powers—eventually formed two opposing military alliances: the Allies and the Axis. A state of total war emerged, directly involving more than 100 million people from more than 30 countries. The major participants threw their entire economic, industrial, and scientific capabilities behind the war effort, blurring the distinction between civilian and military resources. World War II was the deadliest conflict in human history, marked by 70 to 85 million fatalities, most of whom were civilians in the Soviet Union and China. It included massacres, the genocide of the Holocaust, strategic bombing, premeditated death from starvation and disease, and the only use of nuclear weapons in war.
There were many major factors in the decline that exerted a growing downward pressure on production and employment, resulting in a general reduction of economic activity.
Edsel is an automobile marque that was planned, developed, and manufactured by the Ford Motor Company for model years 1958 through 1960. With the Edsel brand, Ford had expected to make significant inroads into the market share of both General Motors and Chrysler and close the gap between itself and GM in the domestic American automotive market. Ford invested heavily in a yearlong teaser campaign leading consumers to believe that Edsels were the cars of the future – an expectation they failed to meet. After being unveiled to the public, they were considered to be unattractive, overpriced, and overhyped. Edsels never gained popularity with contemporary American car buyers and sold poorly. The Ford Motor Company lost $250 million on Edsel development, manufacturing, and marketing.
Arthur Frank Burns was an American economist. His career alternated between academia and government. From 1927 to the 1970s, Burns taught and researched at Rutgers University, Columbia University, and the National Bureau of Economic Research.
Government efforts to promote a prompt economic recovery played an important role in the moderation of the recession. Dwight D. Eisenhower, Raymond J. Saulnier, Robert B. Anderson, and Lyndon B. Johnson were some of the important figures playing major roles in this effort. Eisenhower’s main focus was to stimulate recovery while keeping the government’s financial “house in order”.
Dwight David "Ike" Eisenhower was an American army general and statesman who served as the 34th president of the United States from 1953 to 1961. During World War II, he was a five-star general in the Army and served as Supreme Commander of the Allied Expeditionary Force in Europe. He was responsible for planning and supervising the invasion of North Africa in Operation Torch in 1942–43 and the successful Invasion of Normandy in 1944–45 from the Western Front.
Raymond Joseph Saulnier was an American economist, who was Chairman of the Council of Economic Advisers (CEA) from 1956 to 1961 under President Dwight David Eisenhower. He was born in Hamilton, Massachusetts.
Robert Bernard Anderson was an American administrator and businessman. He served as the Secretary of the Navy between February 1953 and March 1954. He also served as the Secretary of the Treasury from 1957 until 1961, and was one of President Eisenhower's closest confidants. Two years before his death from cancer, he was disbarred for illegal banking operations and tax evasion.
By the end of the recession, the index of industrial production was 142% of the 1947 to 1949 average. Total employment had increased by about 1 million from its recession low while unemployment had been reduced by 1 million. Income and expenditures of individuals were at new high levels. Gross National Product, the broadest measure of the nation's output of goods and services, had risen to an annual rate of $453 billion.
Officially, recessionary circumstances lasted from the middle of 1957 to April 1958.
Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies.
The economy of Spain is the world's thirteenth-largest by nominal GDP as well as one of the largest in the world by purchasing power parity. The country is a member of the European Union, the Organization for Economic Co-operation and Development and the World Trade Organization. Spain has a capitalist mixed economy. The Spanish economy is the fifth-largest in Europe behind Germany, United Kingdom, Italy and France as well as the fourth-largest in the eurozone based on nominal GDP statistics. In 2012, Spain was the twelfth-largest exporter in the world and the sixteenth-largest importer. Spain is listed 26th in the United Nations Human Development Index and 30th in GDP per capita by the World Bank, therefore it is classified as a high income economy and among the countries of very high human development. According to The Economist, Spain has the world's 10th highest quality of life.
In classical economics, Say's law, or the law of markets, is the claim that the production of a product creates demand for another product by providing something of value which can be exchanged for that other product. So, production is source of demand. In his principal work, A Treatise on Political Economy, Jean-Baptiste Say wrote: "A product is no sooner created, than it, from that instant, affords a market for other products to the full extent of its own value." And also, "As each of us can only purchase the productions of others with his own productions – as the value we can buy is equal to the value we can produce, the more men can produce, the more they will purchase."
The causes of the Great Depression in the early 20th century have been extensively discussed by economists and remain a matter of active debate. They are part of the larger debate about economic crises and recessions. The specific economic events that took place during the Great Depression are well established. There was an initial stock market crash that triggered a "panic sell-off" of assets. This was followed by a deflation in asset and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread unemployment and impoverishment. However, economists and historians have not reached a consensus on the causal relationships between various events and government economic policies in causing or ameliorating the Depression.
Disinflation is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time. It is the opposite of reflation. Disinflation occurs when the increase in the “consumer price level” slows down from the previous period when the prices were rising.
This article covers the development of Spain's economy over the course of its history.
The Great Depression began with the Wall Street Crash in October 1929. The stock market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth as well as for personal advancement. Altogether, there was a general loss of confidence in the economic future.
The recession of 1937–1938 was an economic downturn that occurred during the Great Depression in the United States.
The early 1980s recession was a severe global economic recession that affected much of the developed world in the late 1970s and early 1980s. The United States and Japan exited the recession relatively early, but high unemployment would continue to affect other OECD nations until at least 1985.
In the United States the Recession of 1953 began in the second quarter of 1953 and lasted until the first quarter of 1954. The total recession cost roughly $56 billion. It has been described by James L. Sundquist, a staff member of the Bureau of the Budget and speech-writer for President Harry S. Truman as "relatively mild and brief."
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The timing of the Great Depression varied across nations; in most countries, it started in 1929 and lasted until the late 1930s. It was the longest, deepest, and most widespread depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how intensely the world's economy can decline.
The Depression of 1920–21 was a sharp deflationary recession in the United States and other countries, beginning 14 months after the end of World War I. It lasted from January 1920 to July 1921. The extent of the deflation was not only large, but large relative to the accompanying decline in real product.
The European recession is part of the Great Recession, which began inside the United States. The crisis spread to Europe rapidly and affected much of the region with several countries already in recession as of February 2009, and most others suffering marked economic setbacks. The global recession was first seen in Europe, as Ireland was the first country to fall in a recession from Q2-Q3 2007 – followed by temporary growth in Q4 2007 – and then a two-year-long recession.
The 1973–1975 recession or 1970s recession was a period of economic stagnation in much of the Western world during the 1970s, putting an end to the overall Post–World War II economic expansion. It differed from many previous recessions by being a stagflation, where high unemployment and high inflation existed simultaneously.
The Great Recession in the United States was a severe financial crisis combined with a deep recession. While the recession officially lasted from December 2007 to June 2009, it took many years for the economy to recover to pre-crisis levels of employment and output. This slow recovery was due in part to households and financial institutions paying off debts accumulated in the years preceding the crisis along with restrained government spending following initial stimulus efforts. It followed the bursting of the housing bubble, the housing market correction and subprime mortgage crisis.
The United States entered recession in 1990, which lasted 8 months through March 1991. Although the recession was mild relative to other post-war recessions, it was characterized by a sluggish employment recovery, most commonly referred to as a jobless recovery. Unemployment continued to rise through June 1992, even though economic growth had returned the previous year.
The United States entered recession in January 1980 and returned to growth six months later in July 1980. Although recovery took hold, the unemployment rate remained unchanged through the start of a second recession in July 1981. The downturn ended 16 months later, in November 1982. The economy entered a strong recovery and experienced a lengthy expansion through 1990.
The economic history of the United Kingdom deals with the economic history of England and Great Britain from 1500 to the early 20th century..
The early 1990s recession saw a period of economic downturn affect much of the world in the late 1980s and early 1990s. The economy of Australia suffered its worst recession since the Great Depression.