The V-Day Recession (feb 1, 1945 – oct 1, 1945)
Description:
Duration: Eight months
GDP decline: 10.9%
Peak unemployment rate: 3.8%
Reasons and causes:
The 1945 recession reflected massive cuts in U.S. government spending and employment toward the end and immediately after World War II. Federal spending fell 40% in 1946 and 38% in 1947 while the private sector's output grew rapidly.11 The severity of the downturn remains open to question because much of the eliminated spending represented wartime production that did not serve to increase living standards.12 The elimination of price controls in 1946 artificially depressed output as adjusted for inflation, while the unemployment rate remained low in part because women left the workforce in large numbers (and often unwillingly).13
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Added to timeline:
U.S. Economic Recessions
Economic/Market Recession timeline of the last century.
Date:
