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Tuesday, 29 March 2011

What The Great Depression Has Taught Us?

By Jack Wogan


Many people continue to bear the powerful memory of the Great Depression in their minds, so when the current economic downfall was officially declared in the mass media, they became extremely nervous about the way things will turn out in the end. Since there are so many similarities and dissimilarities between the two periods, we think it is to our best to determine which measures people should use to get out of the economic recession without being too affected by it.

Saving money and reducing your costs is the golden rule if you want to get rid of financial instability. The ideal situation would be for people to cease making new credits and to do everything in their power to cover the existing debts. This way, the creditors will be able to regain the money they have lost while offering credits to their clients and the world economy will slowly recover.

The second aspect you may improve in your life is to replace ready-made products with objects that you may create yourself. Since they didn't have the financial means to purchase all the clothing items and furnish pieces they wanted, most people would dedicate themselves to do-it -yourself activities in the 30s that helped them overcome the crisis. In addition to the fact that you will create resistant products with less money, you will achieve a highly rewarding feeling once your projects will be finished.

Wary consumers will have a lot to gain this year as they will reduce the money they spend on food and other products and thus, avoid getting affected by the economic downfall. Most people throw their food away or their old devices once they become old or broken; yet, you can save a lot of money by reusing old fabrics and apparatuses in order to create new and functional ones. These products may not be as good as new but they will surely help you get through these rough days.

All this saving and wary consumerism will enable you to gain your money back; in this case, we recommend you to invest your savings instead of depositing it in the bank. There are numerous ways you can invest your money in a period of economic recession as tangible products like gold or oil are very likely to become more expensive and thus, you will double or triple the invested sum of money.




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