What Could Happen In One Year If The Economy Does Not Restart

You might say that we have been in a broken world for 9 months already. About half of the nation had been lockdown in some way by the end of March. At that moment the economy’s wheels began grinding to a halt.

Most Americans assumed that after being locked up people would spend hard on big vacations and the economy would bounce backwards by the summer we would be firing the economy back up. Now we are back to making difficult choices as COVID-19’s first wave creeps into new locations and cases escalate as people look out into the world to see if all is clear.

Historical Cues

What Could Happen In One Year If The Economy Does Not Restart

The ball started rolling into the great depression in 1929. Hoover came to power and did nothing to ensure the economy remained strong.

The stock market had clearly peaked, and the booming rise of the 20s had hit its limits

In 1930, Hoover imposed higher tariffs on foreign nations that began collapse of international trade. Massive bank failures happened that year, and many of the largest banks in the country and their branches did not belong to the Fed. Which meant they had to live on cash reserves of their own. Soon after, bank runs followed.

The Dust Bowl was punctuated the first year of The Great Depression and was a severe drought that stymied the nation’s food production. 23 States were affected and even farmers went hungry themselves!

By the way, do you know that in 1932, congress bailed out the banks to the tune of $2 BILLION! This is reported that in today’s money it would have been a $30-billion bailout. Sound familiar?

Related: 10 Great Depression Era Strategies For Saving Money

World Affairs

The world was never ruled by a benevolent superpower. Just reflect for a moment about that. In the literal sense, America is not trying to win. We’re not going for semantics. We are helping men. We are giving money, we are giving our doctors, we are providing aid and we are promoting democracy. Maybe never better than this.

America could become the planet’s first and last benevolent superpower.

When we face a longer period of economic downturn there’s no way the world’s going to suffer alongside us. Depression brings in isolationist thought. Great Britain became the first nation to give up the gold standard in 1931 and abandoned its role as the world’s major international lender.

Eventually a world forced into isolationist thought would result in war. US isolationist policies, after the Great Depression, separated America from the Second World War until Pearl Harbor. Specific reasoning, however, causes Japan to push toward China, and Germany toward Poland.

The US Dollar

Death Cross' strikes US dollar as COVID-19 cases grow - Business ...

The US dollar condition is a fascinating thing, because its value is all about confidence. Its about confidence in America’s steady progress and growth.

I’ve listened to a mixture of scoundrels and economists for years, sometimes one in the same, proclaiming that the dollar’s death was just around the corner.

Our nation burned through dollars as if its value was some strain of pandemic that was more deadly than the Spanish flu that needs to be burned out before it could spread.

We pour money into banks, corporations and even consumers get a sliver to make sure they keep the engine running.

Unless the rotors on the US economy were to slow down even further and imports declined dramatically, trust in the US dollar would certainly falter. Add to that the rising civil unrest in the streets and the failing government to manage it. It is easy to see how other nations might view their currency as a viable replacement for the once unstoppable US dollar.

Of course, it will lead to real inflation, and we all hope to escape the nightmare.

Related: 50 Tips From The Great Depression

Food Shortages

Will the Coronavirus Crisis Lead to Food Shortages? | BU Today ...

As we speak, our nation is plagued by severe food shortages.

The retailers do their best to keep up with it, but if the stock isn’t available, you can’t do anything. In recent times, people eat at home like never before and many industries struggle.

The biggest soda company has dealt with their issues on a social media platform:

“We are seeing greater demand for products consumed at home & taking measures to adapt, working to mitigate the challenge during this unprecedented time. We appreciate your loyalty to our beverages; please know that we’re working hard to keep the products you love on the shelves.”

You have seen the shelves yourself. Given the fact that fewer people work, and fewer people fly, less food is available than ever.

Big names like Conagra, General Mills and even Campbells Soup are working overtime but falling short to meet demand.


Is France showing us what America's next civil war will look like ...

In the issues of inequality and capitalism, the streets are still alive.I read that no matter what happens, 1/3 of all restaurants in LA are going under. You will look at the restaurant supply chain on a hole to grasp the impact that it has on the economy.

1/3 of the employees in that market will never go back to work, and 1/3 of the orders placed by restaurants for food and other supplies will disappear affecting the restaurant supply industry which is already suffering.

That works its way back to the farms and factories. A wave of cuts and closures is flowing through the supply chain for restaurants.

This is just one industry.

People have to work. They go into the streets when people have no work, and they don’t have money. They look for answers. They leave signs up, or burn buildings down. They could run up into homes and take what they need, depending on how bad it gets and how long it will last.

When our economy struggles for a full year, civility in our country would be at a breaking point.


We like to think our love and our families is going to get us through the hardest times. That might be true for some, but this lockdown and subsequent civil unrest has hardly been true for all. There’s been a increase in violent actions of all sorts.

Domestic abuse went as high as 27% through May. Substance deaths also saw a significant rise. Divorce and custody fights is yet another example of how dynamics in the family can be influenced by being shut down and out of work.

Those figures come from just 2 months of struggle. Imagine how it would look if people had been out of work for a longer period!

Related: 11 Unexpected Ways To Earn Money In A Depression

Surely a second American Depression would send the world into a tailspin at large. We buy it all! To be frank. Our tourism dollars are precious and these are only indicators from a consumerist perspective of what we are doing.

Many powers will step into the fold for a chance to take advantage of a weakening America. At the end, will China have its chance? While it sounds like a perfect story, they will lose the most from an American Depression!

It is time you built your own economies. You need local suppliers and businesses that will help you and yours through this dark time. This is a time for freedom and self-reliance. It is time for preppers to benefit from all their hard work.