The Great Depression devastated economies both within the United States as well as outside of the country. It earned its name because the Great Depression was the longest and most widespread depression of the 20th century.

It was on this day, December 16th, in 1978 that Cleveland, Ohio defaulted on $14,000,000 on short-term loans from local banks. Cleveland was the first city to default on loans in the post-depression era.

The major reason for Cleveland’s default was because of a decline in population. People were relocating and businesses were moving outside of the city during the 1960s and 1970s. As a result, properties declined in value and tax revenues decreased. Residents resisted tax increases, so the city was unable to recover. It took seven years for the city of Cleveland to completely recover from default.