Long Depression

Quick Facts: Who was Long Depression?

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Long Depression

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A global economic recession spanning from 1873 to 1879, marking a major industrial downturn.

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Origins & Early Life

The Long Depression was a worldwide price and economic recession, beginning in 1873 and lasting until either March 1879, or the year 1899, depending on the metrics used. It was most severe in Europe and North America, which had been experiencing strong economic growth fueled by the Second Industrial Revolution. The episode was labeled the "Great Depression" at the time, and it held that designation until the Great Depression of the 1930s. Though it marked a period of general deflation and recession, it did not have the severe economic retrogression of the later Great Depression. The United Kingdom of Great Britain and Ireland was the hardest hit; during this period it lost some of its large industrial lead over the economies of continental Europe.

Career & Major Achievements

While it was occurring, the view was prominent that the British economy had been in continuous depression from 1873 to as late as 1896 and some texts refer to the period as the Great Depression of 1873–1896, with financial and manufacturing losses reinforced by a long recession in the agricultural sector. In the United States, historians refer to the long depression as the Depression of 1873–1879, focusing on the Panic of 1873 and the Panic of 1893. The U.S. National Bureau of Economic Research (NBER) dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it is the longest-lasting contraction identified by the NBER, eclipsing the Great Depression's 43 months of contraction. In the United States, from 1873 to 1879, 18,000 businesses went bankrupt, including 89 railroads.

Enduring Legacy & Impact

Unemployment peaked in 1878 at 8.25%. The period preceding the depression was dominated by several major military conflicts and a period of economic expansion. In Europe, the end of the Franco-Prussian War yielded a new political order in Germany, and the £200 million indemnity imposed on France led to an inflationary investment boom in Germany and Central Europe. New technologies in industry such as the Bessemer converter were being rapidly applied; railroads were booming. In the United States, the end of the Civil War and a brief post-war recession (1865–1867) gave way to an investment boom, focused especially on railroads on public lands in the Western United States – an expansion funded largely by foreign investors.

Chronological Milestones & Life Events

1. 1865: 1865 Milestone — In the United States, the end of the Civil War and a brief post-war recession (1865–1867) gave way to an investment boom, focused especially on railroads on public lands in the Western United States – an expansion funded largely by foreign investors.
2. 1873: 1873 Milestone — The Long Depression was a worldwide price and economic recession, beginning in 1873 and lasting until either March 1879, or the year 1899, depending on the metrics used.

Historical Fact-Check Quiz: Long Depression

True or False: “The Long Depression was considered the first global economic recession of its kind.”

Answer (FALSE ❌): While it was a massive international crisis, the text notes that the designation 'Great Depression' was reserved for the 1930s event.

Contemporary Figures & Related Historical Timelines

• A. K. Fazlul Huq — Historical peer (Born in 1873) (1873): Pakistani statesman and jurist, known as Sher-e-Bangla, a founding father of Pakistan.
• Adam Sedgwick — Historical peer (Died in 1873) (1873): Pioneering British geologist and Anglican priest, co-founder of modern geology.
• Agha Hashar Kashmiri — Historical peer (Born in 1879) (1879): Pioneering Urdu poet, playwright, and dramatist known for Shakespearean adaptations.
• Agrippina Vaganova — Historical peer (Born in 1879) (1879): Foundational Russian ballerina and creator of the influential Vaganova method.
• Adnan Menderes — Historical peer (Born in 1899) (1899): Turkish politician who served as Prime Minister of Turkey from 1950 to 1960.
• Al Capone — Historical peer (Born in 1899) (1899): Notorious American gangster and businessman during the Prohibition era.
• A. C. Bhaktivedanta Swami Prabhupada — Historical peer (Born in 1896) (1896): Pioneering global spread of Krishna consciousness teachings and the Hare Krishna mantra.
• Alfonso Caso — Historical peer (Born in 1896) (1896): Pioneering Mexican archaeologist renowned for pre-Columbian studies.
• Ahn Chang Ho — Historical peer (Born in 1878) (1878): Pioneering Korean independence activist and leader of the Korean-American community.
• Alfred Döblin — Historical peer (Born in 1878) (1878): Pioneering German modernist novelist, essayist, and doctor, famed for Berlin Alexanderplatz.

Frequently Asked Questions about Long Depression