The rising cost of living and inflation have many people fearing that a future economic recession or even a depression could be on the horizon.
The Great Depression was a very difficult time in American history. It lasted from the late 1920s up until the start of World War II, and America’s GDP fell by more than 30% while unemployment skyrocketed to over 20%. It represented the single biggest economic downturn in the history of the United States.
It’s important to remember, however, that not everybody became poor and lost money during the Great Depression. On the contrary, a lot of people were able to make money and even become rich.
The point of this is to show you that even if a future Great Depression strikes, there will still be ways for you to make money, or at the very least to barter and trade.
In this article, we’ll cover how people were able to become rich during the Great Depression, and then we’ll give you a few ideas for how you could make money or trade in a potential future economic collapse.
Who Got Rich During The Depression?
There’s an old saying that the rich can always figure out ways to become richer. Believe it or not, more millionaires were made during the period of the Great Depression than any other time period in American history.
While the most commonly accepted start date of the Great Depression (according to most historians) is 1929, the truth is that the seeds leading up to the infamous Stock Market Crash were already being planted in the years prior.
Related: 10 Things Not To Do When The Next Great Depression Strikes
Long story short, too much credit was being extended to people and businesses to the point that the amount of credit given exceeded the available cash in the economy.
It was only a matter of time before companies and individuals alike could no longer afford to pay their credit bills.
This resulted in a complete collapse of the banking industry and the housing market.
Those who had liquid cash available, however, took advantage of the collapse in prices. They began buying up companies, property, and homes, and they also invested heavily in companies that were making in-demand products.
A few years later when the stock prices of these companies began to increase, and when the value of property and homes began to increase again, these people got rich… very rich.
How Can You Get Rich During a Future Depression?
So what’s the lesson to be learned here?
Simple: avoid becoming trapped in credit debt and start stashing cash away. The biggest trap you can find yourself in is to not have enough cash to help get you through an economic collapse because you’re spending too much on your monthly debt payments.
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