Long Depression
Nobel laureate economist Milton Friedman, author of "A Monetary History of the United States", on the other hand, blamed this prolonged economic crisis on the imposition of a new gold standard, part of which he referred to by its traditional name, The Crime of 1873. This forced shift into a currency whose supply was limited by nature, unable to expand with demand, caused a series of economic and monetary contractions that plagued the entire period of the Long Depression. Murray Rothbard, in his book "History of Money and Banking of the United States", argues that the long depression was only a misunderstood recession since real wages and production were actually increasing throughout the period. Like Friedman, he attributes falling prices to the resumption of a deflationary gold standard in the U.S. after the Civil War.
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.