Romans 13:8 – “Owe no man any thing, but to love one another”
Great Depression: How Debt Was Settled
I couldn’t help but to ask myself, the Great Depression: how debt was settled?
The Great Depression was a period of uncertainty with the highest recorded unemployment and inflation in US history.
Once the Great Depression began, did anyone see just how important having depression-proof assets would be.
World War I and II took place during the Great Depression. The cost of U.S. wartime military spending was $3.8 trillion (based on 2021 dollar currency levels).
The war did not help but hurt the economy. I know economist strongly disagree. War is “big business”.
If you’re in your 20s or 30s today, you could consider long-term and short-term investments.
Having assets that can retain their value during an economic downturn will be vital.
Cash, silver and gold are things it’s good to have on hand during difficult times.
Even in the best economic periods, you should have an emergency fund.
The FDIC insures all deposit accounts, including checking, savings, certificates and money market accounts up to $250,000.
Personally, I am not trying to rely on the government to give me back my money should the economy tank.
Value of assets
The value of debt-free home ownership should never be underestimated.
During the Great Depression, bonds returned a yield of 6.04 percent. You could not get that today.
The price of gold increases when the dollar falls because gold never changes in value.
Real estate provides a long-term investment for a certain value during uncertain economic times.
If you notice, I did not recommend putting any money in the stock market, bonds etc.
Settling debt
A majority of people didn’t pay any debt during the Great Depression.
Congress passed the Social Security Act, which provided a safety net for the elderly, unemployed, and disabled.
Bartering, not using credit, growing your own food, helping your neighbor and working to have multiple sources of income is what people did.
People paid with cash, so they are only limited to purchases that their money could buy.
At the end of the day, learn to live within your means. Create an emergency fund. Buy tangible assets (silver, gold, land etc.).
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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