Recession is defined as the deterioration of a country’s economic activity for two successive quarters. The United States, although widely considered as an economic power, has not been immune to the scourge of recession. In fact, the nation has experienced a number of economic setbacks since the beginning of the 1900s. Here are the various instances of recession that took place in the US since the start of the 20th century and the reasons why they happened.
We hear the word recession all the time? But what is it and why do recessions happen? The impact of an economic recession is utterly wide-ranging. Depending on its nature and extent, a recession’s effects can be huge or minimal, direct or indirect. In any case, a recession is something that everyone should care to know about.
But in order to care about it, you must know what a recession is and why it happens. According to the National Bureau of Economic Research (NBER) in the US, a recession refers to a considerable decline in economic activities happening at a wide scale, which lingers for several months and is visible in macroeconomic data such as national output, employment, and industrial production, among others. Although the word recession gets thrown around a lot for periods of economic uncertainty or inactivity, it is often used by economists and business leaders to mean (at least) two consecutive quarters of GDP decline. But enough with the technicalities, here are some of the reasons why recessions happen in the economy: