Our world's concentration on finances and money is bad enough as it is. Many people are going into some tight situations due to all of this. Yet, it's even worse if you're spending more than the average person due to something important on the side. Yes, I'm referring to prepping.
Unfortunately, prepping can be incredibly expensive. Yet, when our planet enters an economic crisis, things can only get worse. So, it's important we learn how to operate around that, or handle it if it comes our way.
Here are some important lessons to learn from various economic crashes in the past, from the folks at Skilled Survival.
Lesson 1 – “Job Security” Is A Dangerous Myth
The stock market is just a numerical representation of reality. When it crashes, it’s the underlying businesses that make up the stock exchange that struggle to perform.
And once a crash starts, it’s difficult to stop. When fear turns into all out panic people, stop spending, which leads to lower business profits, which pushes stock prices even lower, which then leads to even less spending.
Economic depression is a vicious cycle, where businesses are not selling their inventories because people are not buying.
All businesses will immediately start downsizing their staff of employees to help offset their future drop in revenues.
The weaker businesses will find that massive layoffs are not enough. They can’t keep the doors open, and everyone who worked for them is out of a job.
This downward cycle ushered in the era of The Great Depression.
Unemployment rates skyrocketed. The unemployed masses spent their remaining savings on only the bare essentials (i.e. food, rent) until even those dollars ran out.
So even if you think your job is secure, are you 100% certain?
Lets image that your company does survive but to do so must layoff a few employees from each department. How can you be certain you won’t be among those few?
If you’re a relatively young employee, you might be let go because hey “you’ll land on your feet”. If you’re a more seasoned employee, cutting your salary will make a bigger difference to a struggling business’s bottom line.
You can’t assume how these things will shake out…
In stable times, people like to talk about their “job security”. They fool themselves into believing that their job or their industry can weather any storm. It’s a suckers bet.
Instead, you should assume that you could lose your job in an instant and live, plan and prepare accordingly.
Lesson 2 – Self-Defense Matters In Tough Times
As times got tougher, people got more desperate. People who could not afford to feed themselves or their families forced to more extreme means of providing or risk starvation.
Organized crime took off like a rocket ship. The mobs in New York and California became some of the wealthiest organizations in the country because of their control of the liquor smuggling operations.
Desperate times call for desperate measures surviving The Great Depression. A father or mother with starving children will abandon their morals and steal from others.
You should assume your resources will come under attack. Especially if you’ve stockpiled food, vital supplies, and resources others want. Get prepared to protect what’s yours.
Lesson 3 – You Must Stay Mentally Prepared
Brothers and sisters, lovers and friends were subject to extreme suffering and (as the name of the era implies) depression.
Many folks were simply not equipped to handle the cultural shift from prosperity to poverty – or chose not to – and opted to take their own lives.
If you want to be a rock in a sea of misery, you need to sharpen your mind. The best way to do this is through the philosophy of Stoicism.
One aspect of Stoicism promotes the practice self-deprivation during good times to mentally prepare you for bad times.
One such example is fasting for a week. To experience the sensation of extreme hunger and understand that while uncomfortable in the short term, it’s survivable.
A second example would be to sleep for a week on a cold hard floor and not in a soft, comfortable bed. This practice will help strengthen your resolve and spirit should that ever become your actual reality.
Not only will this practice give you more appreciation for the good things you have in your life today, but also provide mental preparations when life’s circumstances take a turn for the worst.
Lesson 4 – Honest Work Can Be Hard To Find
Single or abandoned women experience especially hard times.
Being a woman in that era made it harder to get work. And if work could be found they rarely got paid a decent wage. Making women exponentially more vulnerable to moral compromises. Which lead to rising rates of prostitution across the US.
Many women who could not find honest work turned to “the oldest profession in history.” It was a desperate means for surviving The Great Depression.
Again, having some active and useful skills can help to avoid the toughest of compromises. Sewing, gardening, seed saving, farming, butchering, etc.
These are just a few of the many self-reliance skills that can help offset costs and maybe even turn a small profit.
Lesson 5 – Vices Were In High Demand
Rates of alcoholism escalated despite the prohibition laws that were enforced in the US at this time. Most of the available booze was either expensive imports, diluted imports, or homebrewed hooch. All of which have their shortcomings and most of which were controlled by the mob, or independent bootleggers.
Neither of whom were good folks to owe money. And amazingly, regardless of all that, the number of alcoholic Americans rose steadily throughout the Depression.
When times are tough a lot of people peer down the bottom of a bottle looking for answers.
So if you happen to have a stockpile of these highly desirable vices you can sell or trade them at a nice profit to help keep your loved ones safe.
So, as you can tell economic crashes can be very hard times. It's quite obvious that you wouldn't want to find yourself in one. Hopefully, taking these lessons into consideration, you'll be able to better prepare yourself for an economic collapse, and even be able to avoid one!
For more on lessons from the Great Depression, please visit Skilled Survival.
The secrets from that book are about to be revealed together with 3 old teachings that will change everything you think you know about preparedness…