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Buckle down for a likely depression-era
Published March 27, 2008
After doing considerable research for this column, I’ve become very depressed. My depression is akin to the feelings that I experienced as a young child when I discovered who the “real” Santa Claus was while I was peeking into the wrong closet at home where I discovered a red suit complete with pillow.
Shortly thereafter, I discovered that rabbits really do not lay multi-colored eggs in the spring.
More depressive symptoms — again.
And now, my research for this column is very clear and depressing.
The “Great Depression” wasn’t so great after all!
In fact, most historians and others agree that the over-a-decade-long struggle (starting in 1929, following the “Roaring 20s”) for the United States and elsewhere around the globe was disastrous for many.
With the stock-market crash on the now-infamous Black Tuesday came the loss of jobs for many, farms were lost due to foreclosed mortgages, families were up-rooted and forced to move to often unfamiliar locations where economic conditions were no better, and the country generally seemed to lose hope for much of anything.
Money was short for the majority of people. Business attempted to recover its economic losses by increasing their profit margins — and by not increasing workers’ wages resulting in an imbalance between the financially rich and poor.
Those who were debt-free living in rural America seemed to survive the struggles of the depression the best by providing for their needs by literally living off the land — as they were generally doing that anyway.
The other “group” to effectively avoid the depression-era struggles was the elite rich and powerful who still lived the “Roaring 20s” lifestyle while the rest of the country sacrificed to hold the country together.
Nearly 25 percent of the workforce became unemployed during this period. Nearly 50 percent of Blacks were unemployed.
Then-president Herbert Hoover referred to the early days of the depression as “a passing incident in our national lives” that would only last 60 days or so.
As presidents occasionally are, Hoover was dead wrong and had a difficult time ever admitting that fact.
Citizens were so upset with Hoover that showing an empty pocket turned inside out was referred to as the “Hoover flag.” Shanty towns for the displaced populace sprung up and were called “Hoovervilles.”
Necessities became luxuries for most families during the depression.
Families had to be creative in their struggle to just survive. Since bulk flour was sold in attractive print sacks, that material was used to make clothing for the women. Shoes were only worn by children to go to and from school and to attend church. Barefoot was the general rule for children because shoe soles were costly and scarce.
The cost of utilities was high and the consumption levels had to be drastically reduced or often eliminated all together in order to conserve the limited money to be used for food and other survival necessities.
When Franklin Roosevelt challenged Hoover for the presidency in 1932, he introduced his New Deal (generally government funded) which, over time, helped put workers back to work and gave relief to struggling farmers who saw live-stock prices drop to record lows.
Fast-forward to today and the discussion begs the question: Are we heading into another Great Depression?
If the answer is yes, and it sure seems to be leaning in that direction, then what steps should we take to protect ourselves and our families for a depression period that may last several years?
Perhaps the most important economic step towards survival during a depression is to be free of all debt. Living in a crowed city is probably not the place you want to be. Live where you can plant a garden and maybe raise some livestock. Make sure you have a good water source available.
You probably want to conserve both your assets and income by making sure that savings and other cash accounts are at least protected by federal insurance. Short of putting your money under a mattress, that’s about as conservative as you can get — and even the FDIC may not make it through a serious depression period. Other investments should be well diversified.
Do whatever it takes to hold on to your job. If necessary, swallow your distaste for the job because jobs will be few and far between.
Sell off all of your “junk” that you do not need. Keep working tools and equipment that will help you to be self-sustaining. Reduce your vehicles to just one if at all possible.
Get rid of those wasteful spending habits such as cable connections, smoking, and visits to shopping malls.
Have that heart-to-heart talk with your family and explain that being frugal is the rule for now that may just guide you around depression-era pitfalls.
Pull your family and other like-minded friends together (by living in a nearby location) in order to pool resources, share friendships, and together keep the “hope” up for a better day for our country through both individual and group efforts to survive.
If we make it through this likely depression-era, or avoid it all together, we can than refer to it as the Fantastic Depression — for the next generation to question and Monday-morning quarterback.
Grafe is a former managing editor of the Seguin Gazette-Enterprise and a former chief juvenile probation officer for Guadalupe County.
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