1819 - 1824

The Panic of 1819 was really the first serious financial crisis that the U.S. encountered. The problems brought on by the panic were widespread and destructive. As some examples, foreclosures skyrocketed, many banks failed, unemployment reached new highs, and a huge slump in agriculture made the effects of the panic close to home for many Americans.

Manufacturing also hit roadblocks, and many American workers lost their jobs as a result. But what might be even more significant about this recession is that it ended an era of enormous economic expansion that the U.S. saw after the War of 1812.

The recession officially ended around the year 1824, but the effects carried over for a time that perhaps no one will ever be able to estimate. Being the first serious financial crises in the history of the U.S., this recession greatly challenged how the government handled such situations, and set a new bar for the future.