Are We Facing Another Great Depression?

Are We Facing Another Great Depression?

I have written a lot of articles over the years about saving money, frugality, and generally living as a tightwad. I have even touched on the history of the Great Depression and the subsequent World War II. I studied those two areas in particular because I knew history was doomed to repeat itself. 

Are we facing another Great Depression? There are definite signs that we might be headed toward a stock market crash or higher inflation. There are also indicators that show we might be avoiding a recession by gradually coming off inflation. However, experts are still saying that a recession will happen in 2023-2024 due to growing national spending, increasing costs, and the declining value of the dollar. At the time of this writing, inflation seems to have stabilized, so anything can happen.

You can believe what you want, but the prices are not really getting better at the stores. We are just being manipulated to think that. The general public has a short memory. They think the prices are getting better. However, anyone who has kept a price book knows the prices are not getting better. The quantity of the packages is not the same as before the Great Shut Down of 2020 and the prices are higher. 

Shortages may appear to be less common, but I have noticed that my local grocery stores are carrying fewer products. They are just getting better at hiding in the store by keeping the shelves neat, taking out shelves, and stocking more of the same products.

Also, there are still shortages or threats of shortages. Now, India says they are not exporting any rice except for basmati rice. They account for 40% of exports of rice in the world. A majority of the world’s population uses rice in their meals every day, if not multiple meals a day. At least eggs have become reasonable again, but many people turned to raising their own chickens for eggs.

Housing costs are still unmanageable for most people. Rent costs have increased in most major cities. Housing prices are still high for a majority of people looking to own. Interest rates have been predicted to increase to 7% or higher because the Federal Reserve thought raising interest rates was the right thing to do to combat inflation. Americans are doing what they can not to become homeless, but the cost of living has significantly increased for most of us since 2020. At this point, we are still somehow managing to cover bills, but from personal experience, it is becoming tougher to do. I know I am not the only one.

Things are not really getting any better globally, either. The United States is purging money and supplies to Ukraine to support its war. (Sound familiar? Similar to the US sending money and supplies to Great Britain before we got involved in WWI and WWII.) Russia does what it wants and doesn’t care. China has become a factor in crude oil prices depending on how much they purchase for reserves. OPEC and BRICS will be competing against each other. China is also still the main manufacturer of goods globally. China is also stockpiling goods (food, precious metals, oil, etc.) for future economic downturns.

And now, we are looking at another war in the Middle East and are sending supplies and support to defend our interests and honor our agreement with Israel. There are those people who will claim that a war is good for the economy. That was been the case in the past for the United States, but we were in a better financial position than we are now. In the past, other countries have suffered due to their war involvement, even if they were victorious in the war. Great Britain enacted austerity measures until 1979 and continued rationing after WWII until 1952. France was destitute after WWII with little to no money or food, and had to rebuild its infrastructure and economy. The US may not walk away so easily after this potential war. 

So, what can you do to prepare for the next Great Depression? I have written in the past about dealing with tough economic times. According to economic experts, we probably will not experience a depression until the 2030s. We are on a definite track for one, though. So you have time, although you are most likely feeling the pinch now. If our government and global powers have their way, you will be feeling more than just a pinch as they try to implement their great agenda

Also, read these foods for thoughts:

What can you do?

The first thing to do is to get your financial house in order. This means multiple things. Have a cash reserve of $1000 or more easily accessible. Have an emergency fund (cash or savings) that covers 1-6 months of income. Clear up your debts (consumer, credit cards, student loans, and possibly mortgages). I realize that having cash savings could be a problem when they force everyone to be cashless, but we haven’t crossed that bridge yet.

Next, you will want to work on skills that can help you stretch your money further. Cooking from scratch, growing your food, sewing and mending, repairing your items, and making your own things are all very handy things to know when times are hard. You still have time to learn new skills as well as polish old skills, but you will want to work on these.

On a side note, you should focus on having items that you can still purchase parts for fixing and can fix yourself. New items, including vehicles, are very difficult to fix due to the nature of the throwaway culture and advancing technology. Having good quality items that you can take care of yourself will be beneficial in the future.

Having food and nonfood storage will be critical. They will literally be lifesavers when you don’t have the money to cover bills and buy groceries in the same pay period. I have written extensively about food storage in the past and can find those articles here. I would recommend at least one year of food storage with plans to add to the storage or be able to grow your own food to supplement your storage. Some preparedness experts are recommending 3-7 years of food storage. You need to do what you can with what you have in your budget. 

You need to create your own community and get to know your neighbors. Having a close group of friends and family that will help you when you are experiencing tough times will be invaluable. Getting to know your neighbors is two-fold: you will know who will help you, or you can help when times are tough, and you will know if you can trust them or not.

Security is also essential. Unfortunately, crime increases as people get more desperate and times get tougher. You will need to increase your home security. You will also need to make sure you can defend yourself however you choose to do so.

You will need to be frugal or even more frugal than you are now. If you already feel like you are at the top of your frugal game, how do you take it further? Now is the time to experiment with that. You can try things like reusable toilet cloths and stretching items further than you thought to become more resilient.

Creativity is also key to surviving tough economic times. However, being creative is easier when you have the skills to make those ideas and solutions happen. You can fix or make something to replace a whatchamacallit easier when you understand what you are doing and can be creative in the repair or replacement.

Finally, you need to work on being adaptable. You can do all these things and still suffer the consequences of other’s actions. What you do depends on your attitude and your willingness to keep going. Keeping a positive, can-do attitude will improve your chances of surviving and thriving in these times. 

Thanks for reading,


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