NOVEMBER 1948 – OCTOBER 1949 (11 months)
The late 40s recession might be what some would consider another routine cycle of the modern economic model. As it has been proven over and over again, when the Federal Reserve fails to maintain the delicate balance that exists between the money supply, the interest rates, and inflation, than what you get is recession.
The system automatically needs to purge itself of pressure, and that is what a recession does. During the late 40s recession, we saw unemployment rates go from around 4% to about 8%. It was really no more severe than any other recession in terms of businesses closing or jobs becoming scarce.
In fact, it was really less severe than most recessions the United States has lived through. The modern economic cycle continues, and brings with it its dry and rainy seasons. This is simply the nature of our modern economic structure.
