Long Depression
In the United States, the Long Depression began with the Panic of 1873. The National Bureau of Economic Research 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. Figures from Milton Friedman and Anna Schwartz show net national product increased 3 percent per year from 1869 to 1879 and real national product grew at 6.8 percent per year during that time frame. However, since between 1869 and 1879 the population of the United States increased by over 17.5 percent, per capita NNP growth was lower. Following the end of the episode in 1879, the U.S. economy would remain unstable, experiencing recessions for 114 of the 253 months until January 1901.
Reading Railroad Massacre
The Long Depression, sparked in the United States by the Panic of 1873, had extensive implications for US industry, closing more than a hundred railroads in the first year and cutting construction of new rail lines from of track in 1872 to in 1875. Approximately 18,000 businesses failed between 1873 and 1875, production in iron and steel dropped as much as 45 percent, and a million or more lost their jobs. In 1876, 76 railroad companies went bankrupt or entered receivership in the US alone, and the economic impacts rippled through many economic sectors throughout the industrialized world.