Economic history of the United States
Panic of 1873 created one of the worst and longest depressions in American history, seriously affecting every aspect of the economy and bringing the railroad expansion to a halt. The New York Stock Exchange closed for ten days. Of the country's 364 railroads, 89 went bankrupt, a total of 18,000 businesses failed between 1873 and 1875, unemployment reached 14% by 1876, during a time which became known in Britain as the Long Depression. Politically, the Democrats took control of Congress in 1874, the election of 1876 was deadlocked.
Looking Backward
The decades of the 1870s and the 1880s were marked by economic and social turmoil, including the Long Depression of 1873–1879, a series of recessions during the 1880s, the rise of organized labor and strikes, and the 1886 Haymarket affair and its controversial aftermath. Moreover, American capitalism's tendency towards concentration into ever larger and less competitive forms—monopolies, oligopolies, and trusts—began to make itself evident, while emigration from Europe expanded the labor pool and caused wages to stagnate. The time was ripe for new ideas about economic development which might ameliorate the current social disorder.