Today’s Economics and the Great Depression

The great depression took place from 1929-1933. Black Tuesday, the day Wall Street fell, October 24,1929. There was an abandonment of traditional values and frugality. The rich grew richer at the expense of others. They lived in a mode of self-indulgence and self-gratification by immediate acquisition of personal possessions. People had great expectations, and gambled in the stock markets. Their world changed in a day, and many old values snapped back into place.

The credit mentality changed to; don’t spend money that you do not already have in your pocket. Don’t buy anything until you have twice the purchase amount echoed through the streets. These statements do not mean much to most people, until they have to face the situations we face today, having little in our pockets.

Brother can you spare a dime, became the theme in those days. An example of the need for it is what women kept in the pantry:

• Bread
• Potatoes
• Onions
• Powdered milk
• Dried beans
• Eggs

Most  foods were rationed except eggs and dairy. We are not in this situation yet, but it certainly gives us food for thought.

The biblical support they derived to sustain them during the rough times, was a verse from Luke.

Luke 12:15 (NKJV)

And He said to them, “Take heed and beware of covetousness, for one”s life does not consist in the abundance of the things he possesses.

Turning to the Lord in times of need, believing that prayers were answered, brought the strength to meet the next day.

People believed in those times just as they do today that it doesn’t matter how much money you make, but how much money you saved. When the banks closed, people lost their money, and many their life’s savings. The banks only paying pennies on the dollar to their customers, sound familiar. Maybe the people who went through the great depression have something to say that we need to hear.

Never buy anything you can use; only what you can’t live without. Repair, reuse, and don’t throw anything away. Don’t pay someone else to provide something that you can learn to do or make yourself. Collectively these statements became a womans moto for her home and family. Many times worn out clothes were used to make a nine patch quilt to keep the family warm on winter nights.

Yes I do believe we can learn much from the people of the depression, that will benefit us in todays recession. My personal favorite of the listens is, use it up, wear it out, make it do or do without. I hope you will pick your favorite, and I also hope that you will use it in your home. Maybe you will even teach your children some of the things you have read here so that they will be prepared for their recession.