Recession of 1958

The Recession of 1958, also known as the Eisenhower Recession, was a sharp worldwide economic downturn in 1958 (3). The effect of the recession spread beyond United States borders to Europe and Canada, causing many businesses, like the mining operation, to shut down (4). It was the most significant recession during the post-World War II boom between 1945 and 1970 and had a sharp economic decline that only lasted eight months. By the time recovery began in May 1958, most lost ground had been regained. As 1958 ended, the economy was heading towards new high levels of employment and production. Overall, the recession was regarded as a moderate one based on the duration and extent of declines in employment, production, and income (3).

There were many major factors in the decline that exerted a growing downward pressure on production and employment, resulting in a general reduction of economic activity (3).

In an effort to promptly recover the economy, the government played an important role in the moderation of the recession by creating policies. Dwight D. Eisenhower, Raymond J. Saulnier, Robert B. Anderson, and Lyndon B. Johnson were some of the important figures that held major roles in the effort to save the economy. Eisenhower’s main focus was to stimulate recovery while keeping the government’s financial “house in order” (2).

By the end of the recession, the economy was in a different place. The index of industrial production was 142% of the 1947 to 1949 average. Total employment had increased by about 1 million from its recession low while unemployment had been reduced by 1 million. Income and expenditures of individuals were at new high levels. Gross National Product, our broadest measure of the Nation’s output of goods and services, had risen to an annual rate of 453 billion (3). As the American people became more conscious of the business cycle and more alert to any alterations in the economy, there was an increased public awareness of both the need for and the attainability of economic progress (1).

Officially, recessionary circumstances lasted from the middle of 1957 to April 1958 (2).

...
Wikipedia