Nearly 100 years ago, the Great Depression of the 1930s blindsided so many people. Millions of lives were altered by the economic downturn, and many were left wondering how there could have been so little or even no warning ahead of the event. In fact, ITR Economics was founded in part due to the Great Depression. Our founder, Chapin Hoskins, began researching economic theory in order to find a way to identify upcoming depressions and recessions in time to prepare for them.
Back in 2014, in the book “Prosperity in the Age of Decline,” ITR Economics forecasted that a second Great Depression would begin in 2030. Given that we have years of economic foresight into the next decade, is there any hope that the 2030s Great Depression can be prevented?
Can Anything Stop the 2030s Great Depression From Happening?
With years of economic insights to help us prepare for what is to come in the 2030s, surely something can be done to prevent or limit the next Great Depression, right? Unfortunately, it is not that simple. Some of the proposed solutions outlined in “Prosperity in the Age of Decline” could help lessen the depression’s impact, but they are far too drastic for most people to truly consider and are therefore unlikely to be brought to fruition.
For example, one of these ideas involves people working well into their 70s before retiring. The longer people work, the more tax dollars they will put into the system. This would ease some of the nation’s financial pain, but it is hard to imagine that individuals closing in on 80 would be willing and able to postpone retirement and keep working.
Another solution for reducing the burden of the 2030s Great Depression would involve a drastic shift in government structure and spending. For this to happen, lawmakers of both parties would have to shift to a singular focus on representing the nation as a whole rather than their individual parties, states, and districts. This solution would also require that politicians agree to reduce the national budget by 1% each year.
So, while drastic steps toward reducing debt, reducing spending, reducing health care spending via improved medicine, and more are technically possible, such solutions are more likely wishful thinking. The likelihood of our implementing any one of them is slim to none. While there will be attempts – such as tax increases – to relieve the financial pressure on our government (and others), most such efforts will come up well short of addressing the problem at hand.
The 2030s Great Depression Will Be Felt Around the Globe
As we continue to discuss the 2030s Great Depression, some are under the impression that it will only be a problem in the US. Remember, the second Great Depression will be a global problem. Major nations including China, Canada, Mexico, Germany, the United Kingdom, Russia, and others will also feel the full weight of this economic downturn.
It Is NOT the End of the World!
Yes, the 2030s Great Depression will be painful and unpleasant for the many who will not see it coming. However, if you continue to read our blogs, watch our videos, and tune in to our webinars, you can be prepared to protect your family, your personal wealth, and your business. Then, once we begin to recover from the depression, you can take advantage of the climb back up to economic prosperity. In fact, the next Great Depression can become a wealth-creating opportunity for those who are prepared!
While it does not appear that the 2030s Great Depression can be prevented, keep in mind that this event will not be the end of the world – it will be an economic downturn, and, with the right preparation and mindset, you will be able to protect yourself. If you would like to work with ITR Economics to get your business ready for the coming depression, contact us today with any questions you have!
