The recession of the 1890s was primarily caused by a decline in what economic sector?

The recession of the 1890s was substantially impacted by a decline in the agricultural sector. This period was characterized by significant drops in agricultural prices, which were largely due to overproduction and falling demand, both domestically and internationally. As farmers struggled with low prices, many faced crushing debt and bankruptcy. This hardship had ripple effects throughout the economy, as agriculture was a critical sector that employed many workers, supported related industries, and contributed significantly to the overall economic health of the nation.

The agricultural downturn caused a decrease in consumer spending and reduced purchasing power in rural areas, which worsened the economic situation. This not only affected farmers but also impacted manufacturers and service providers that relied on the financial stability of agricultural communities. Hence, the recession of the 1890s is closely tied to the struggles within the agricultural sector, making it the primary cause of the economic downturn during that period.