How To Become a Millionaire During The Depression (2024)

How To Become a Millionaire During The Depression

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How To Become a Millionaire During The Depression (1)

It is a little known fact that more millionaires were made during The Great Depression than in any other era in U.S. history. Want to know how that happened so you can cash in on the economic crisis looming on the horizon?

I did a lot of research work to find the real facts, not just the historical data we are spoon-fed by the media about how hard the depression was on the masses and how hard the President worked to turn the U.S. economy around. It takes digging through piles of research documents including the copyright and patent office files and the Library of Congress to find a lot of the data. However, you can also find a lot of information on the internet if you dig deep enough.

There is one golden nugget in this history lesson that can enable you to make tons of money when our country is in a recession (like right now) because a recession is exactly the same thing as a depression except it doesn’t last as long and the damage is not so bad. So bear with me while I give you a short history lesson that contains this golden nugget.

It is important to know that the Great Depression actually started a few years before the 1929 stock market crash and lasted until World War II brought the country out of the Depression.

In the years before 1929, as more and more credit was extended to businesses and individuals the economy was tipping over the edge from available cash to way too much credit debt. When the amount of extended credit reached a critical mass and companies could no longer pay the credit bills, the companies crashed (the 1929 debacle.) When workers lost their jobs they could not pay their credit debts and the housing market and banking industries crashed.

All the business enterprises that were bought and sold during the depression by people with liquid cash are too numerous to mention, but because of the war effort, those with liquid cash who bought land, homes, companies, or invested in the stocks of the companies that made products that were in demand by our government for the war effort made millions. These industries included such products as:

1 – Metals: steel, iron and aluminum
2 – Communications: radios and parts
3 – Transportation: Aircraft, Tanks, boats and vehicles (and their parts)
4 – Armaments: Guns and munitions
5 – Boots, clothing, belts, backpacks, hats, blankets, tents and cots (and the textiles to make them)
6 – Containers
7 – Shipping – Truck Transportation – Railways
8 – Oil and petroleum and stocks in those oil wells (the Texas oil boom was a biggie!)

A few of the well known companies that changed hands during that period were John Deere, Douglas Aircraft, Reynolds Metals, Ericsson, and even the Goudy Gum Company – they were the first gum company to issue baseball cards with gum.

Some of the oppressive laws that our government passed during the 1930s were an effort to take money from the large number of people who had liquid cash [cash that was easy to get their hands on because it was not tied up in investements] and were using it to buy companies (or stocks in companies) as well as property. The government wanted to take it away from the people who had been smart enough to stash away liquid cash and not get into credit debt, and use it to fund the war effort as well as re-distribute it to the extremely poor families who did not have any way to take care of themselves.

These laws were later ruled unconstitutional, but the point is that the people with liquid cash were spending it in way that made them millions, especially in industries necessary to the war effort. Yes, the stock market crashed, but the stocks could still be bought at undervalued prices [much lower prices than the true value] and those with cash invested at the bottom of the market.

The tactic to be learned from this is a simple one, and is on that the business owners who use my Cash Flow Management Software implement right away. They stash cash. In case you missed it, here is THE GOLDEN NUGGET: When it comes to money, the only thing you have to fear is having no liquid cash to get you through an economic crisis.

It might be a great time to buy property, but there are many people who have too much of their money tied up in non-liquid investments like land that takes time to sell. They are worth lots of money on paper, but can hardly pay their bills. And there are those who have lost a lot of their money invested in semi-liquid investments like the stock market and have little liquid cash that they could get their hands on within 30 minutes if an emergency presented itself. The frightening shape our current economy is in today has the same indicators that warned of the depression of the 1930’s. Not enough cash savings, too much corporate and personal credit debt, banks failing and having to be bailed out and the mortgage crisis / real estate crash.

What should you be doing to become a millionaire? My clients are getting rid of their credit debt and stashing liquid cash like crazy. They are sleeping well at night and will make it through whatever comes. They are “protecting their cash like a junk yard dog.” Does that mean you should sit on all of your cash and do nothing to recover the losses you may have sustained? Absolutely not! Just be very careful what you buy, and make sure that whatever that is, that you have it in your physical posession. Look at all the people who are buying physical gold and silver. They are NOT buying the precious metals ETFs on the stock market because they can’t see the physical metals anywhere that are backing up those stock shares and they aren’t foolish enough to take their word for it either. If you can’t physically feel it or touch it or hold it in your hand, you don’t have it or own it.

How To Become a Millionaire During The Depression

How To Become a Millionaire During The Depression (2024)

FAQs

How to become rich during a depression? ›

How to make money in a recession
  1. Invest in stocks. Every investor wants to buy low and sell high. A stock market downturn during a recession might be an opportune time for bargain hunters. ...
  2. Invest in real estate. Real estate offers another potentially lucrative opportunity during a recession.

Were there millionaires during the Great Depression? ›

It is a little known fact that more millionaires were made during The Great Depression than in any other era in U.S. history. Want to know how that happened so you can cash in on the economic crisis looming on the horizon?

What was the best investment during the Great Depression? ›

The best performing investments during the Depression were government bonds (many corporations stopped paying interest on their bonds) and annuities.

What jobs thrived during the Great Depression? ›

Industries that thrived during the Great Depression.
  • This has all happened before and it will all happen again.
  • Food. ...
  • Household products + essential consumables. ...
  • Healthcare. ...
  • Communications. ...
  • Capital goods. ...
  • Security. ...
  • Anyone who keeps advertising & innovating.
Mar 20, 2024

Who got richer during the Great Depression? ›

Howard Hughes grew up rich and got even richer during the Great Depression. In fact, the seeds of his eventual billion-dollar aerospace and defense empire were sown during this time.

How did the wealthy survive the Great Depression? ›

Those wealthy whose wealth was all in the stock market or was highly leveraged, lost everything. However, not every wealthy person had all their assets in the stock market or leveraged with debt. Many wealthy people owned land and buildings, all debt free. Many had lots of cash.

What to do with money in a depression? ›

Diversify into investments.

If you're worried about banks failing, you can begin looking at safer investments as a place to put your money. Assets like Treasury bonds tend to do quite well during recessions for exactly this reason. They may not give a significant return, but you know you'll get your money back.

How did people prosper during the Great Depression? ›

The average American family lived by the Depression-era motto: “Use it up, wear it out, make do or do without.” Many tried to keep up appearances and carry on with life as close to normal as possible while they adapted to new economic circumstances. Households embraced a new level of frugality in daily life.

What happened to rich people during the Depression? ›

Those wealthy whose wealth was all in the stock market or was highly leveraged, lost everything. However, not every wealthy person had all their assets in the stock market or leveraged with debt. Many wealthy people owned land and buildings, all debt free.

What to own in a depression? ›

Best Assets To Own During A Depression
  • Gold And Cash. Gold and cash are two of the most important assets to have on hand during a market crash or depression. ...
  • Real Estate. ...
  • Domestic Bonds, Treasury Bills, & Notes. ...
  • Foreign Bonds. ...
  • In The Bank. ...
  • In Bank Safe Deposit Boxes. ...
  • In The Stock Market. ...
  • In A Private Vault.
Mar 26, 2020

What does well in a depression? ›

Companies that make basic necessities like consumer staples and food will always have demand, even during an economic downturn - as people need to prepare meals, wash, clean, and so on.

What was the greatest economic depression of all time? ›

At the height of the Depression in 1933, 24.9% of the nation's total work force, 12,830,000 people, were unemployed. Wage income for workers who were lucky enough to have kept their jobs fell 42.5% between 1929 and 1933. It was the worst economic disaster in American history.

What sells during depression? ›

Toothpaste, deodorant, shampoo, toilet paper, and other grooming and personal care items are always in demand. Offering these types of items can position your business as a vital resource for consumers during tough times. People want to look good, even when times are tough.

Who made money during the depression? ›

Not everyone, however, lost money during the worst economic downturn in American history. Business titans such as William Boeing and Walter Chrysler actually grew their fortunes during the Great Depression.

What foods did they eat during the Great Depression? ›

Top 10 Great Depression Foods That Are Actually Tasty
  • 10 Potato Soup.
  • 9 Bread and Butter Pickles.
  • 8 Egg Drop Soup.
  • 7 Spaghetti with Carrots and White Sauce.
  • 6 Mock Apple Pie.
  • 5 Prune Pudding.
  • 4 Mystery Spice Cake.
  • 3 Hoover Stew.
Oct 5, 2023

How to get rich during a recession or depression? ›

The most important part of building wealth during a recession is investing as much as possible in the stock market. Take steps to ensure you'll have stable income, like starting a side hustle or working on your skills.

Where to put money during depression? ›

Domestic Bonds, Treasury Bills, & Notes

Mutual funds and stocks are considered to be a big gamble during depressions. While Treasury bonds, bills, and notes are more secure investments. These items are issued by the U.S. government.

What is the wealth rate for depression? ›

The prevalence of depressive symptoms was 39.3% for participants with family income under $20,000, 25.5% for participants with family income from $20,000–$75,000, and 14.9% for participants with family income greater than $75,000.

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