Depression of 1807
1807 – 1814
The Depression of 1807 was a recession that occurred during the presidency of the famous Thomas Jefferson. It is surmised that what caused the recession was actually an act passed by congress. The act in question, which was called the Embargo Act of 1807, was passed by congress under Jefferson’s presidency.
The Embargo Act of 1807, upon passing through congress, absolutely devastated the shipping industry of the U.S. The Federalists, who opposed the law, fought against it with all their might. In fact, after it passed, the Federalists allowed smuggling to take place in New England, as a way to combat the new act and to try to get it reversed.
Many people who worked in the shipping industry lost their jobs, resulting in suffering families. Businesses also lost a lot of business, because in large sea-faring towns, nobody had any money anymore. They had all lost their jobs do to the Embargo Act.