One of my pet peeves is the hyperbole surrounding economic downturns. Words like "collapse" make people expect a 90% fall, rather than the typical 3%.

There certainly have been economic collapses throughout history. The most dramatic occurred in the Americas after contact with Europeans. That was mostly driven by new diseases killing almost everyone.

More often, a "collapse" is confined to a political system, as with the Soviet Union. It doesn't necessarily mean the economy collapses, but there will usually be some degree of recession while the economy corrects the politically misallocated resource distribution.