AUGUST 1957 – APRIL 1958 (8 months)
The late 50s recession, also called the recession of 1957, struck the late 50s with high unemployment rates and failing businesses. It was mostly due to the tightened monetary policy of the Federal Reserve.
However, as the policy had been tightened two years previous, towards the end of 1957 the policy was eased again. This shifting and then resifting had some interesting results on the U.S. economy. For example, the budget balance went from a budget surplus of 0.8% of GDP in 1957 to a deficit of 0.6% of GDP the following year.
With the year 1959, we saw a 2.6% of GDP. So, even though the recovery was fast, it didn’t help keep thousands from losing their jobs due to failing businesses and massive program failures. Many were forced to try to find new jobs after being laid off. However, as businesses closed, people soon realized that it was no easy task.