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Lang Son Travel on This economic downturn coincided with the re-election campaign of President Jimmy CARTER, who, in large part because of this bad economic news, lost the election to Ronald REAGAN. The economy then expanded for exactly one year, reaching a peak in the third quarter of 1981. This ends the first business cycle shown in the figure. The beginning of the next business cycle ushered in extremely hard times for the U.S. economy. This contraction lasted for 16 months, the longest and deepest downturn to date (2003) since the DEPRESSION of the 1930s. Lang Son Travel 2016.