Recession of 1949

The Recession of 1949 was a downturn in the United States lasting for 11 months. According to the National Bureau of Economic Research, the recession began in November 1948 and lasted until October 1949.^[1]

The 1948 recession was a brief economic downturn; forecasters of the time expected much worse, perhaps influenced by the poor economy in their recent lifetime.^[2] The recession began shortly after President Truman's "Fair Deal" economic reforms. The recession also followed a period of monetary tightening by the Federal Reserve.^[3]

During the recession the GDP of US

During this recession, the Gross Domestic Product of the United States fell 1.7 percent. In October 1949, the unemployment rate reached its peak for the cycle of 7.9 percent.^[4]

Main causes of the recession

This recession was after the World War 2 this is regarded as the main cause of it. According to C.A.Blyth "the most important cause of 1948-1949 recession was substential fall in the fixed investments". *[1]

The severity of this recession

Maximum unemployment was about 7.9%. Change in Gross National Product GNP reduced Up to -1.5%. Department store sales fell 22%. The wholesale price and cost of living indexes fell 12 and 5 points.

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References

www.nssa.us/journals/2010-35-1/pdf/35-1%2006%20Ford.pdf ←§°§→