Do you know what caused the 1982 recession? This was one of the worst economic periods in the history of the United States, and will probably be remembered as such for quite some time. Even though there have been a couple of recessions since, this one will always stick out thanks to the reasons for it as well as the many problems it brought forth.

The Iranian Revolution was the main cause of the 1982 recession. This took place in Iran in 1979, and began to affect other parts of the world, especially the United States, shortly thereafter. What happened as this revolution continued to spread? For one, the price of oil skyrocketed across the world. As you probably know, this caused gas prices to spike which in turn put a huge strain on millions of Americans.

The main reason for the price increase was the new power that had recently taken over Iran. The new powers-at-be decided to export oil on an inconsistent basis while also doing so at a much lower volume. The end result was the price of oil increasing day after day. To protect against this the United States put into place a policy to control inflation and the end result was a recession.

This recession lasted from January 1980 to November 1982, or a total of 22 months. This was one of the longer recessions in recent history, and one that will not soon be forgotten. Now do you have a better idea of what caused the 1982 recession?

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Are you aware of what happens to the economy during a recession? If so, you probably have a good understanding of what is going on right now. If not, you may be worried that your money is in trouble and that the financial world as you know it is coming to an end. Simply put, it is important to know what happens to the economy during a recession and how this will affect you.

In basic terms, during a recession the economy slows down. To go along with this, consumers begin to freeze up because they are worried about their money as well as their future. In turn, they are no longer spending money at retail stores or investing in the stock market, bank products, etc.

A recession is more than just one detail of the economy going bad. Instead, one detail may get the ball rolling but soon enough there is a lot that needs fixed. For example, the latest recession was caused by a massive bank failure. Due to this, the real estate market began to take a dive along with the stock market dropping to its lowest levels in quite some time.

Once the economy is in a recession it is difficult to get out because there is so much that needs to be fixed. Right now, banks need to become more responsible and consumers need to start spending and investing once again. But with so much risk involved this is not something that is going to happen over night.

During a recession, a situation in which the gross domestic product is negative for at least two quarters, the economy greatly slows down.

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As you know, the United States is in a recession that is causing major problems throughout the country as well as other parts of the world. But this is not the first time that the economy has hit a snag. The last recession was in 2001. While this was a serious situation, it is important to note that the recession of 2001 was far from what the nation is dealing with right now. That being said, there were several major causes of the 2001 recession.

The number one cause of the recession in 2001 was the crash of the dot com bubble. When this happened the stock market when into a state of shock, and millions of people who heavily invested in these companies lost a lot of money. The eventual collapse of the NASDAQ is one detail of the 2001 recession that most people remember. By the final quarters of 2002 the crash was enough to cause a recession.

Many economists are unsure of whether or not this was an actual recession because the economy did not experience a negative gross domestic product for two consecutive quarters. But even though there is a lot of debate around this subject, there is no denying that this “recession” caused many Americans to go through tough times.

As you can see, the major cause of the 2001 recession was the bursting of the dot com bubble. Even though this recession, if you want to call it that, only lasted eight months - it was still serious.