What was the term used for the economic downturn before the Great Depression?

The term that best describes the economic downturn before the Great Depression is the recession of 1920-21. This period was marked by a significant contraction in economic activity following the end of World War I.

The recession of 1920-21 was characterized by high unemployment and deflation, as the economy transitioned from wartime production to peacetime needs. It is often noted for its sharp and rapid economic decline, which laid the groundwork for the robust economic expansion that would follow throughout the 1920s, eventually leading up to the Great Depression in 1929. Understanding this context helps highlight the severity of the earlier recession, as it illustrates the cycles of the economy and how short-term downturns can precede longer-term economic challenges.