P1The longest bull run in a century of art-market history ended on a dramatic note with a sale of 56 works by Damien Hirst, “Beautiful Inside My Head Forever”, at Sotheby’s in London on September 15th, 2008. All but two pieces sold, fetching more than £70m, a record for a sale by a single artist. It was a last victory. As the auctioneer called out bids, in New York one of the oldest banks on Wall Street, Lehman Brothers, filed for bankruptcy.

P2The world art market had already been losing momentum for a while after rising bewilderingly since 2003. At its peak in 2007 it was worth some $65 billion, reckons Clare McAndrew, founder of Arts Economics, a research firm—double the figure five years earlier. Since then it may have come down to $50 billion. But the market generates interest far beyond its size because it brings together great wealth, enormous egos, greed, passion and controversy in a way matched by few other industries.

P3In the weeks and months that followed Mr. Hirst’s sale, spending of any sort became deeply unfashionable. In the art world that meant collectors stayed away from galleries and salerooms. Sales of contemporary art fell by two-thirds, and in the most overheated sector, they were down by nearly 90% in the year to November 2008. Within weeks the world’s two biggest auction houses, Sotheby’s and Christie’s, had to pay out nearly $200m in guarantees to clients who had placed works for sale with them.

P4The current downturn in the art market is the worst since the Japanese stopped buying Impressionists at the end of 1989. This time experts reckon that prices are about 40% down on their peak on average, though some have been far more fluctuant. But Edward Dolman, Christie’s chief executive, says: “I’m pretty confident we’re at the bottom.”

P5What makes this slump different from the last, he says, is that there are still buyers in the market. Almost everyone who was interviewed for this special report said that the biggest problem at the moment is not a lack of demand but a lack of good work to sell. The three Ds—death, debt and divorce—still deliver works of art to the market. But anyone who does not have to sell is keeping away, waiting for confidence to return.

P1We tend to think of the decades immediately following World War II as a time of prosperity and growth, with soldiers returning home by the millions, going off to college on the G. I. Bill and lining up at the marriage bureaus.

P2But when it came to their houses, it was a time of common sense and a belief that less could truly be more. During the Depression and the war, Americans had learned to live with less, and that restraint, in combination with the postwar confidence in the future, made small, efficient housing positively stylish.

P3Economic condition was only a stimulus for the trend toward efficient living. The phrase “less is more” was actually first popularized by a German, the architect Ludwig Mies van der Rohe, who like other people associated with the Bauhaus, a school of design, emigrated to the United States before World War II and took up posts at American architecture schools. These designers came to exert enormous influence on the course of American architecture, but none more so than Mies.

P4Mies’s signature phrase means that less decoration, properly organized, has more impact than a lot. Elegance, he believed, did not derive from abundance. Like other modern architects, he employed metal, glass and laminated wood—materials that we take for granted today but that in the 1940s symbolized the future. Mies’s sophisticated presentation masked the fact that the spaces he designed were small and efficient, rather than big and often empty.

P5The apartments in the elegant towers Mies built on Chicago’s Lake Shore Drive, for example, were smaller—two-bedroom units under 1,000 square feet—than those in their older neighbors along the city’s Gold Coast. But they were popular because of their airy glass walls, the views they afforded and the elegance of the buildings’ details and proportions, the architectural equivalent of the abstract art so popular at the time.

P6The trend toward “less” was not entirely foreign. In the 1930s Frank Lloyd Wright started building more modest and efficient houses—usually around 1,200 square feet—than the spreading two-story ones he had designed in the 1890s and the early 20th century.

P7The “Case Study Houses” commissioned from talented modem architects by California Arts ＆ Architecture magazine between 1945 and 1962 were yet another homegrown influence on the “less is more” trend. Aesthetic effect came from the landscape, new materials and forthright detailing. In his Case Study House, Ralph Rapson may have mispredicted just how the mechanical revolution would impact everyday life—few American families acquired helicopters, though most eventually got clothes dryers—but his belief that self-sufficiency was both desirable and inevitable was widely shared.

P1The great recession may be over, but this era of high joblessness is probably beginning. Before it ends, it will likely change the life course and character of a generation of young adults. And ultimately, it is likely to reshape our politics, our culture, and the character of our society for years.

P2No one tries harder than the jobless to find silver linings in this national economic disaster. Many said that unemployment, while extremely painful, had improved them in some ways: they had become less materialistic and more financially prudent; they were more aware of the struggles of others. In limited respects, perhaps the recession will leave society better off. At the very least, it has awoken us from our national fever dream of easy riches and bigger houses, and put a necessary end to an era of reckless personal spending.

P3But for the most part, these benefits seem thin, uncertain, and far off. In The Moral Consequences of Economic Growth, the economic historian Benjamin Friedman argues that both inside and outside the U.S., lengthy periods of economic stagnation or decline have almost always left society more mean-spirited and less inclusive, and have usually stopped or reversed the advance of rights and freedoms. Anti-immigrant sentiment typically increases, as does conflict between races and classes.

P4Income inequality usually falls during a recession, but it has not shrunk in this one. Indeed, this period of economic weakness may reinforce class divides, and decrease opportunities to cross them—especially for young people. The research of Till Von Wachter, the economist at Columbia University, suggests that not all people graduating into a recession see their life chances dimmed: those with degrees from elite universities catch up fairly quickly to where they otherwise would have been if they had graduated in better times; it is the masses beneath them that are left behind.

P5In the Internet age, it is particularly easy to see the resentment that has always been hidden within American society. More difficult, in the moment, is discerning precisely how these lean times are affecting society’s character. In many respects, the U.S. was more socially tolerant entering this recession than at any time in its history, and a variety of national polls on social conflict since then have shown mixed results. We will have to wait and see exactly how these hard times will reshape our social fabric. But they certainly will reshape it, and all the more so the longer they extend.