1873
Great Depression

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The economy slows down. Competition from foreign goods, especially American and German, undermines exports and forces down prices of industrial products. Employers start cutting back: between 1873 and 1879, wages fall by 5% in real terms. Huge numbers of people have migrated to the towns in recent years, and there is no longer enough work for them. Unemployment rises from 1% to 11% in six years. In 1875, bad weather makes the harvests fail and an agricultural depression adds to the misery.

Some industries do better than others. And because prices fall, some workers find their wages go further. However, unemployment throws many people into terrible poverty, and the economy remains gloomy until the mid-1890s.

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