In a Brief History of Economic Downturns, Business Intelligence says, “At the amusement park that is the American economy, capitalism is a lot like that roller coaster, a never-ending ride with lots of twists, turns, ups, and downs – or booms and busts…”
Nine major economic crashes were listed.
There was the Panic of 1819, which lasted five years.
The Panic of 1826 went for six years.
In 1857, a single major company went out of business and dragged the entire US economy down.
In 1873, Jay Cooke & Company, the largest US bank at the time failed triggering a recession that lasted six years.
The next serious crash was the panic of 1907, causing massive job losses and many business failures.
In 1918, hyperinflation in Europe and the end of US wartime production caused a brief but severe downturn in the American economy.
The Great Depression imploded in 1929 with the collapse of the stock market and the American banking system and wouldn’t end until the beginning of World War II.
In 1973, the price of gas at the pump soared leading to long lines to fill gas tanks.
Then the Dot–Com Bubble burst in combination with 9/11/2001.
When the sub-prime mortgage bubble exploded in the U.S. in 2008, about 80,000 private owned businesses in China went out of business and 15 to 20 million workers lost jobs – much bigger numbers than the U.S. suffered.
However, within a few weeks, those who had lost their jobs in China were back at work or had returned to rural China to the collective farm.
Why should China cave in to pressure from America and Europe and turn its economy into another Wild West show?
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