The U.S. economy has witnessed numerous highs and lows throughout its history, but few events leave as deep an impact as recessions. From the Great Depression of the 1930s to the sudden shock of the COVID-19 pandemic in 2020, economic downturns have shaped policy, politics, and the financial well-being of millions. Each recession has its own unique cause—ranging from banking crises and war adjustments to global pandemics and trade conflicts.

In this blog post, we take you through a complete timeline of every U.S. recession, highlighting their causes, duration, and economic effects. With current concerns brewing in 2025 over a potential recession tied to global trade tensions, understanding past patterns has never been more important.

What is a Recession?

A recession is typically defined as a significant decline in economic activity spread across the economy, lasting more than a few months. It is usually visible in GDP, real income, employment, industrial production, and wholesale-retail sales. Recessions are officially declared by the National Bureau of Economic Research (NBER).

Complete Timeline of U.S. Recessions, Causes, and Effects

1. Panic of 1797

Duration: 1796 – 1799

Cause: Speculative land bubble burst, collapse of the First Bank of the U.S., and effects from the Napoleonic Wars.

Effect: Bank failures, deflation, and a sharp decline in trade.

2. Depression of 1807

Duration: 1807 – 1810

Cause: Embargo Act of 1807, which restricted international trade.

Effect: Economic contraction, especially in shipping and agriculture.

3. Panic of 1819

Duration: 1819 – 1821

Cause: Post-war credit boom, over-speculation in land, and tightening by the Second Bank of the U.S.

Effect: Widespread foreclosures, bank failures, unemployment.

4. Panic of 1837

Duration: 1837 – 1843

Cause: Bank failures, speculative lending, Jackson’s banking policies.

Effect: A 6-year depression, high unemployment, business closures.

5. Panic of 1857

Duration: 1857 – 1859

Cause: Decline in international economy, railroad speculation, and bank failures.

Effect: Business failures, stock market crash.

6. Long Depression

Duration: 1873 – 1879

Cause: Collapse of railroad overbuilding and banking panic.

Effect: Severe economic downturn, mass unemployment.

7. Panic of 1893

Duration: 1893 – 1897

Cause: Railroad bankruptcy, gold standard crisis.

Effect: Bank failures, 18% unemployment.

8. Panic of 1907

Duration: May 1907 – June 1908

Cause: Stock market crash, bank runs.

Effect: Severe contraction in credit, paved way for Federal Reserve System.

9. Recession of 1918–19

Duration: Aug 1918 – Mar 1919

Cause: Post-WWI adjustment.

Effect: Brief but sharp decline in industrial production and jobs.

10. Depression of 1920–21

Duration: Jan 1920 – July 1921

Cause: Fed tightening, postwar deflation.

Effect: Sharp drop in GDP and prices, rapid recovery followed.

11. Great Depression

Duration: Aug 1929 – Mar 1933 (primary phase)

Cause: Stock market crash, banking collapse, policy errors.

Effect: GDP down by 30%, unemployment over 25%.

12. Recession of 1937–1938

Duration: May 1937 – June 1938

Cause: Premature fiscal tightening, Social Security tax.

Effect: Deep drop in industrial production.

13. Post-WWII Recession

Duration: Feb 1945 – Oct 1945

Cause: Transition from wartime economy.

Effect: Brief drop in output, labor shift.

14. Recession of 1949

Duration: Nov 1948 – Oct 1949

Cause: Monetary tightening.

Effect: Industrial output drop, modest unemployment rise.

15. Recession of 1953

Duration: July 1953 – May 1954

Cause: Post-Korean War adjustment.

Effect: Decline in GDP and jobs.

16. Recession of 1958

Duration: Aug 1957 – Apr 1958

Cause: Fed policy, inventory correction.

Effect: Temporary rise in unemployment.

17. Recession of 1960–61

Duration: Apr 1960 – Feb 1961

Cause: Tight monetary policy.

Effect: GDP decline and rising joblessness.

18. Recession of 1969–70

Duration: Dec 1969 – Nov 1970

Cause: Vietnam War spending, inflation control.

Effect: Mild but widespread contraction.

19. 1973–75 Recession

Duration: Nov 1973 – Mar 1975

Cause: Oil embargo, inflation ("stagflation").

Effect: Severe GDP drop and high unemployment.

20. 1980 Recession

Duration: Jan – July 1980

Cause: Fed interest rate hikes to curb inflation.

Effect: Short-lived contraction.

21. Early 1980s Recession

Duration: July 1981 – Nov 1982

Cause: Continued Fed tightening.

Effect: Highest post-WWII unemployment (10.8%).

22. Early 1990s Recession

Duration: July 1990 – Mar 1991

Cause: Oil shock, debt, tight monetary policy.

Effect: Jobless recovery, slow GDP growth.

23. Early 2000s Recession

Duration: Mar – Nov 2001

Cause: Dot-com bubble burst, 9/11.

Effect: Tech job losses, mild GDP decline.

24. Great Recession

Duration: Dec 2007 – June 2009

Cause: Housing market collapse, financial crisis.

Effect: Deepest downturn since the Great Depression; millions unemployed, bailouts.

25. COVID-19 Recession

Duration: Feb – Apr 2020

Cause: Pandemic lockdowns and supply shocks.

Effect: Record-breaking job losses, rapid government stimulus.

As of early April 2025, JPMorgan Chase has forecasted a possible U.S. recession by the end of the year, citing rising economic risks stemming from President Donald Trump's renewed tariff war with key trading partners, including China and the European Union. The escalation in trade tensions is expected to increase costs for American businesses and consumers, disrupt global supply chains, and dampen investor confidence.

Potential contributing factors include:

• Retaliatory tariffs on U.S. exports
• Increased import costs for manufacturing and retail sectors
• Heightened market volatility and reduced corporate investment

While recessions are a natural part of the economic cycle, their effects can be mitigated through sound fiscal policies, monetary interventions, and financial prudence. History shows that while downturns are painful, recovery and growth inevitably follow.

Disclaimer

The information provided in this article is for general informational purposes only. While we strive to ensure accuracy, economic interpretations and historical data may vary. This article does not constitute financial or investment advice. Please consult a qualified financial advisor for specific guidance related to your situation.