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«-- Letter Re: How to Handle Real Estate Holdings in a Economic Depression | Main | Note from JWR: --» Letter Re: The Depression of the 1930s--Why No Societal Collapse?Hi Jim, I've been doing a lot of thinking of our current situation in this country and it occurs to me that every generation has things going on that is very concerning. But in particular was thinking the Great Depression should have been a good example of things going to h*ll. Yet there was not this great meltdown where people needed to go to retreats and such. So I'm writing this e-mail to see if you've done any research to do comparisons with our [present-day] situation and the Great Depression situation to determine why the country did not collapse during that time period. Thanks, - Steve JWR Replies: Thanks for raising that point. It is well worth discussing. There are some substantial differences between our society in the early 21st Century, and America in the 1930s. With these differences, our society is now much more fragile and vulnerable to collapse. Here are a few that come immediately to mind: Consider the Attributes of America in the 1930s : A largely agrarian and self-sufficient society. (Now, just 1% of the population operating farms and ranches feed the other 99%.) In summary, in the 1930s it cost a lot less to live (as a percentage of income) and people were willing, able, and accustomed to "making do" without. When people lost their jobs, in many cases they didn't lose their homes because they were paid for. Many folks could simply revert to a self-sufficient lifestyle and earn enough with odd jobs to pay their property taxes. What fraction of The bottom line: If America were to experience a Second Great Depression, given the high level of debt and systems dependence, there would be enormous rates of dislocation and homelessness. And with modern-day immorality and the prevalent "me first " attitude, I have no doubt that riots and looting would absolutely explode. |
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