What economic downturn was experienced in the United States in the early 1870s, largely due to over-speculation and poor fiscal policy?

The Panic of 1873 was an economic downturn that significantly impacted the United States, stemming from a combination of over-speculation, particularly in railroads, and poor fiscal policies that resulted in a loss of confidence in the financial system. The era leading up to this panic saw a rapid expansion of railroads, fueled by inflated investments and loans. When the market for these investments faltered, it triggered a banking crisis, leading to bank failures and a subsequent economic depression that lasted several years.

In the aftermath of the Panic of 1873, significant deflation and high unemployment ensued, marking a turning point in the post-Civil War economy. The severity of this panic and its aftermath had lasting effects, influencing both economic policies and societal attitudes towards business practices in America.

The other options represent different economic challenges in U.S. history. The Great Depression, which began in 1929, was much later and resulted from different causes, such as the stock market crash and widespread bank failures. The Recession of 1893 was another economic downturn but had distinct triggers, primarily linked to unstable economic practices and overexpansion in the railroads and industries of the 1880s. The Panic of 1837, much earlier, was