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.
Modern history
The depression had devastating effects in virtually every country, rich or poor. International trade plunged by half to two-thirds, as did personal income, tax revenue, prices and profits. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by roughly 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries suffered the most.
The Great Depression ended at different times in different countries with the effect lasting into the next era. America's Great Depression ended in 1941 with America's entry into World War II. The majority of countries set up relief programs, and most underwent some sort of political upheaval, pushing them to the left or right. In some world states, the desperate citizens turned toward nationalist demagogues—the most infamous being Adolf Hitler—setting the stage for the next era of war. The convulsion brought on by the worldwide depression resulted in the rise of Nazism. In Asia, Japan became an ever more assertive power, especially with regards to China.