The recession of 1937–1938 was an economic downturn that occurred during the Great Depression in the United States. May 1937 – June 1938 · 1 year 1 month Peak unemployment: 17.8% −19.0% (1938) · GDP: −18.2% S&P 500: −29.6% over the recession The Recession of 1937 is only considered minor when compared to the Great Depression, but is otherwise among the worst recessions of the 20th century. Three explanations are offered as causes for the recession: the tight fiscal policy resulting from an attempt to balance the budget after New Deal spending; the tight monetary policy of the Federal Reserve; and the declining profits of businesses leading to a reduction in business investment. Dates: the National Bureau of Economic Research's business cycle chronology. Wiki link Wiki link