I recently did a Google search to see how people made money throughout the 1930s.
Several people bought up undervalued stocks and held on as the stock value increased due to the public’s need for the company’s product or service.
Another one bought companies and leveraged their assets to grow the business (not necessarily financial assets, but the Goodwill, the value of their customer base, etc.) This person went on to become one of the people who made the most wealth in during these years.
Some companies increased their advertising dollars – or advertised more effectively. This strategy worked for Chevrolet as well as Kellogg’s during the 1930s.
In short, savvy investors and business people invested in similar companies and projects to what they currently do.
That brings me to the title of this writing – Is the Economy Really So Bad?
From a financial standpoint, considering the amount of debt we’ve created out of thin air over the past several years in comparison to the goods and services they represent, the supply and demand curve will demand to be satisfied with higher prices, a very slow economy and inflation.
From a building of character, I have a much more positive attitude.
Yes, times were tough – and that is stating it mildly – in the Great Depression for many people. At the same time, the character and personal strength that was built by the Great Depression resulted in two countries primarily composed of farmers saving the world from the likes of Hitler, Mussolini and Tito.
If the Roaring 20s had continued throughout the 1930s, would we have had the character and personal fortitude to fight those evil forces? I would hope so! Still, knowing that difficulties and hardship build character, it is an insightful question.
My conclusion: Yes, we have built a difficult project we must work through. It’s called the National debt (and the lack of individual responsibility). Yet, this economy is going to build character, integrity and fortitude that will make the rest of the world sit up and admire American ingenuity once again.