{"id":15027,"date":"2022-04-19T11:31:55","date_gmt":"2022-04-19T09:31:55","guid":{"rendered":"https:\/\/amend-finance.de\/1956-eisenhower-recession\/"},"modified":"2023-02-26T17:58:54","modified_gmt":"2023-02-26T16:58:54","slug":"1956-eisenhower-recession","status":"publish","type":"post","link":"https:\/\/amend-finance.de\/en\/1956-eisenhower-recession\/","title":{"rendered":"1956 | Eisenhower Recession"},"content":{"rendered":"\t\t
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Also known as the Eisenhower Recession<\/strong>, the 1957-58 recession manifested itself in a severe, worldwide economic downturn. The effects of the recession spread beyond the borders of the United States to Europe and Canada and led to the closure of many businesses. It was the most significant recession during the post-World War II boom between 1945 and 1970 and was characterised by a sharp economic decline that lasted eight months. By the time the recovery began in May 1958, most of the lost ground had been regained. By the end of 1958, the economy was moving towards a new high level of employment and production.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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History<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The recession of 1957-1958 was preceded by an expansionary economy. Before the crisis, US GDP growth in the third quarter of 1955 was extremely high at 8.0% and showed impressive export activity. The rise in market prices of some commodities also contributed to the economic boom.<\/p>\n

Several factors exerted growing downward pressure on production and employment, leading to a general reduction in economic activity.<\/p>\n

New car sales declined sharply as middle-class consumers decided to keep their cars longer instead of replacing them after a few years. Car sales were down 31% from 1957, making 1958 the worst car year since World War II. In just three years, car sales fell from nearly 8 million purchases in 1955 to 4.3 million purchases in 1958.<\/p>\n

Housing construction slowed due to higher interest rates in 1955 and 1956, and by 1957 new housing construction had fallen to about 1.2 million units.<\/p>\n

Business in the capital goods industry gradually declined, leading to the end of an expansionary boom. The initial problems began in 1956 with a slowdown in business planning for equipment replacement and expansion of production facilities, which led to a decline in new orders for equipment. This led to a widening gap between supply and utilisation of industrial capacity. Federal Reserve economists believed that the government had contributed to the recession by restricting Department of Defence purchases in 1957.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Development of the S&P 500 between January 1956 and December 1958<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Progression of the crisis<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Vorkrisenjahr 1955<\/div>

Das BIP der USA w\u00e4chst um 8,0%.<\/p><\/div><\/div><\/div>

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1957<\/div>

Der Neuwagenverkauf f\u00e4llt um 31 %.<\/p><\/div><\/div><\/div>

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Februar 1958<\/div>

Die Rezession gilt als beendet, Verbraucher- und Unternehmensvertrauen erholen sich.<\/p><\/div><\/div><\/div><\/div><\/div><\/div> \n

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