Random Things Of the Economy Was on the Verge of Total Collapse (14 items)

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  (#4) Tulip Mania Almost Destroyed Holland... No, Really

  In 1593, some enterprising flower peddler from Turkey introduced tulips to Holland, and the Dutch went absolutely crazy for the little flowers almost immediately. Unfortunately, the flow of tulips into the country was slow, which drove the price of the flower higher and higher. 

  Then, the Dutch tulips got the coolest disease ever: something known as mosaic, a non-threatening disease that turned the petals vibrant colors. This alteration only drove the price of tulips higher. It wasn’t long until people were doing everything they could - even cashing in their life savings and liquidating land - to get their hands on some tulip bulbs. As it turns out, tulip bulbs aren’t actually worth all that much, and most of the investments in tulips turned out to be (surprise!) basically worthless. The resulting depression made the Dutch resistant to the entire speculative investment game for decades to come.
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  (#11) Rome Fell Because There Wasn’t Enough Coin To Go Around

  By the 2nd century CE, a series of increasingly crappy Roman rulers had taken its toll on the financial foundations that had secured the Empire’s run for more than 800 years. When the centralized government of Rome became overrun with infighting and one assassination after another, the degradation of Rome began properly in 235 CE, following the murder of Emperor Alexander Severus.

  The unprecedented financial machine created by Rome was left without a point of regulation, which caused the minutia of the great machine to break down bit by bit. As the job of “Roman Emperor” became slowly reduced to whoever was holding the knife, the economic stability of the Empire was completely destroyed.
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  (#6) Though He Left Office With Record Approval, Reagan’s Early Years Were Tough On The Economy

  From 1981 to 1982, the United States suffered through its worst economic depression since the big one of the 1930s. In spite of the country’s initial optimism that the new president, Ronald Reagan, would improve the economic situation, exactly the opposite proved to be true. Within 18 months of Reagan’s presidency, the country’s unemployment rate had risen to more than 10%.

  In September of 1982, 54% of Americans said that Reagan’s economic policies had made their situation worse. Miraculously, though, the public’s opinion remained hopeful throughout the downturn and into the following years.
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  (#9) The Mississippi Bubble Slowed Down Trade With The New World For Almost A Century

  Along with another similarly timed “bubble” known as the South Sea Bubble, the Mississippi Bubble essentially crippled an entire nation’s economy. In 1720, an investor named John Law obtained the right to cultivate some of France’s land in the New World. Law proceeded to tout the incredible potential for wealth in the area, which caught the interest of investors. 

  In spite of the fact that most of Law’s statements were utter bullsh*t, he had total government backing since no one could actually disprove any of his statements. As a result of the interest in his company, shares rose by something like 3600%. Then, like true geniuses, the French government started printing money so people could invest more capital in Law’s scheme. And everything went great until the extra paper money started triggering crazy inflation, and Law was forced to flee the country.
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  (#12) The Long Depression Proves That Doing Things On Credit Is Never A Good Idea

  In the early 1870s, things were good in America and the whole world over. While the country was still rebuilding from the Civil War, the economy was thriving, and an optimistic mood was infectious. Then, a fellow named Jay Cooke recommended financing railroad expansion on credit. After all, what could possibly be a safer bet than railroads?

  When the scheme ultimately backfired, Cooke’s financial house was run out of business and caused a “run on banks,” which basically means a lot of customers withdrew their funds from the banks in a rapid fashion. Though the Treasury managed to ensure that everybody got their money, the damage was done, and consumer confidence was totally shot. The resulting decline in consumerism led to an economic slowdown that rippled across the world and lasted - depending on your metrics - until 1896.
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  (#2) An Economic Boom Turned Disastrous In The 1920s, Leading To The Great Depression

  The 1920s saw the American economy swell to heights never before imagined. And that's how the decade is remembered - as one of beaded, alcohol-flowing, flapper-dancing decadence. Unfortunately, that exuberance led to the overvaluing of stocks on Wall Street. When the truth came out, the American economy was decimated. By 1931, more than six million Americans were out of work.

  The economic collapse that landed many working Americans in bread lines didn’t end for a full decade, until the Nazi war machine made American manufacturing a vibrant, thrumming part of the war effort.

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