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.
History of Western civilization
Europe was relatively unstable following World War I. Although many prospered in the 1920s, Germany was in a deep financial and economic crisis. Also, France and Britain owed the U.S. a great deal of money. When the United States went into Depression, so did Europe. There were perhaps 30 million people around the world unemployed following the Depression. Many governments helped to alleviate the suffering of their citizens and by 1937 the economy had improved although the lingering effects of the Depression remained. Also, the Depression led to the spread of radical left-wing and right-wing ideologies, like Communism and Fascism.