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Originally Posted by Sexxxy Sites
Prior to the turn of the 20th century our economy was an agricultural based economy and we fared well. During much of the 20th century we were an industrial based economy and fared well. We then became a technological based economy and fared well. Now it seems that our economy is based upon credit and services and we are not faring well. Can a credit based and service based economy survive?
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The worse recession in US history was probably 1873-79. That lasted over 5 years and ended the gilded age. 1907, 1920, 1929,1974, 1982. These were all nasty recessions. 1873 and 1929 were grand daddies. I wouldn't say they "fared well". The infamous 1907 panic that was solved by JP Morgan and led eventually to the FED. In 1920 there was a massive deflation. Somewhere around 20% in a year. 1974 and 1982 came with super nasty inflationary effects.
There were 12 recessions from 1854-1900. One every 3.8 years and they were deeper and longer than the ones in the 20th century on average. Then in the first half of the 20th century there were 12 recessions. One ever 4.2 years. In the second half of the 20th century there were 8 recessions, One every 6.2 years.
US Recessions have been further apart and weaker in time.
There have always been boom and bust cycles. You had the railroads, airlines, autos, various land speculation boom and busts. The list goes on.
As far as agriculture the last 20 years of the 19th century were murderous on farmers. As a result of technology and transportation "improvements" there was a deflation that put most farmers out of business. not to mention periodic droughts and land busts/booms with hot eastern money moving out to buy land on either side of the new railroad lines.
Just for fun. Let's go way back. How about the boom and bust in ancient rome when a large number of withdrawals under Tiberius caused a number of banks to be closed? There was a money shortage and deflation. Tiberius solved this by ruling that banks had to lend money at 0% interest. Inflation .
Problems, problems. Always problems. "You shall not press down upon the brow of labor this crown of thorns. You shall not crucify mankind upon a cross of gold."