I wonder why it dropped so much in Apr 1942? The Japs had bombed up months previously, so it was old new we were getting in the war. Maybe we lost some big battle that month? Or why the drop then? I'm going to guess it came back rather strong.
I too believe this. Everyone is trying to out-speed the other guy, the ups and downs will only get faster and faster overall.
Look at the dates before the 2009 incident. What happened? Everyone started having lots of slovenly SEX, and started pooting out babies. It was called the "Baby Boom". You add more people into an economy, they start producing more, and also consume more. That is great for business. The more people you insert into a system, the better that system will fare. It took you from 1949 to 2009 to find a huge drop. Then you went from 2009 to 2020. *sniffs* It is because we have so many people wanting to buy cheep shit that our economy will glow-n-grow. More production from new babies = more consumption from those new babies who growed up.
I gotta tell you man, if that's what you got out of that chart, bravo for you. I'm seeing 3 drops of 50% or more in the 1800s, 1 in the 1900s, and 1 (and only one) in the 21 century thus far (2020 was like 30 something percent drop, significantly less). They are just numbers man, might as well be random in my book lol.
What I am saying is...The more people we have IN the economy, the more we are going to get OUT of the economy. The drops over the years up until 2018 have been less frequent and less severe percentage-wise, simply because we have more entities participating in it. There is some sort of smoothing going on. I know there is much talk about the FED "propping" things up, but that surely is not the whole picture. The amount of drops are now increasing, and the percentage drops are decreasing. There is something worth study there I think.
So wait a sec. The drops in the 1800s were before the Fed, correct? Naturally, more big drops when no central bank to begin easing when needed. I learned that in school at least lol. Fewer big drops in recent times because of the Fed. I don't think anyone is on the Fed's case just for the Fed being the fed, unless we got Andrew Jackson on the board. I think they are on the case because of their easy money policies, including INCREASING DOLLARS AT A 23%+ ANNUAL CLIP all in the face of obvious current and increasing inflation. And if you have more people IN the economy today, getting more OUT of the economy, seems to me the more the stock market would fall if those people IN the economy today suddenly dropped OUT of the economy in any downturn meaning more production OUT of the economy. So I don't see where the notion that greater population means less possible drops in the economy carries any water.
Think of dilution or something. I see the concept in my head, but am not in mind to type my thoughts cogently. It is past my bedtime. https://en.wikipedia.org/wiki/Gross_domestic_product