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Ecommerce and the Great Depression Lesson
The Great Depression is long past the memory of most individuals. So, for a brief history lesson this economic collapse happened in 1929 in the United States and took almost fifteen years to end.
In our recent economic climate there are many who wish to point out lessons learned from this event. Obvious lessons include the need to spend less than you receive in wages, save money whenever possible, use what you do have as long as possible and find ways to cut back.
The Great Depression is a historical monument to frugality. Many who lived through that era remained frugal throughout their lives. This is in stark contrast to the last few decades. We often want what we want when we want it and don't mind using credit to get it.
I think one of the biggest lessons of this economic misstep is that we should not wait for someone to bail us out. We need to have a strong sense of self-reliance.
This is especially true of those involved in ecommerce. The growth of business online is staggering. It is something that is used by some as their sole means of income while others use it to supplement an income that may not quite cover all the expenses.
Face it; many people are looking for work. The Internet may actually provide the feeling of becoming a mom and pop establishment of the past in this modern age of fast page corporate lifestyles.
There are numerous couples who are turning to ecommerce and home-based business as a means of escaping the lack of job security in the general workplace. Many do this intentionally and others are introduced to the idea through necessity.
These individuals are not looking for a handout. They are striving to meet the needs of their customers, and their families. They are spending long hours in site maintenance, product fulfillment and marketing. What's more they are loving every minute of it because for every hard hour worked they are finding great satisfaction in answering their own economic questions.
While others stand in long lines filling out applications that in some cases are being fought over by hundreds of other applicants these individuals are carving out their own way in an online environment. They are becoming their own boss and learning new skills that will allow them to care for their family over the long haul.
In the Great Depression men often had to travel great distances from their family in order to find work. The families they left behind were often evicted from their homes or worked especially hard to find their own way to raise money to keep a roof over their heads.
Those who figured out a way to pay their bills in these 'worst of times' were the ones who came out the other side with fewer scars and a greater attitude toward the days to come.
You, too, can get past the days we are currently in, but it will take hard work and it will mean relying on yourself more than you may have ever had to do before, but the good news is you can do it and an online environment is a cost effective way to build a business that will allow you to confront and conquer expenses.
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Suppose the USA had another Great Depression. What percentage of people would lose their jobs?
At the peak of the Great Depression, 25% of people were unemployed. Today, the percentage of jobs loses would be greater because there are more people working. What would the percentage of job losses be?
A recession is almost certain to happen, there is a precise definition for it (2 straight quarters of decline in GDP), some countries (ie. Republic of Ireland) have already declared recession.
Depression, on the other hand has no precise definition and seems mainly to refer to the length of time spent in recession - therefore the term 'depression' can only really be applied in retrospect - we won't know if we are in a depression or not... at least for a few years.
http://www.thecreditcruncher.com/2008/10/recession-of-depression.html
A feature of employment nowadays is the way that jobs are globally linked ie. far more of us are employed by multi-nationals, rather than many individual companies. I think this can be a weakness in times of economic crisis because the 'parent' company may collapse taking the subsidiaries with it, or divert profits from the healthy units into the failing companies.
http://www.thecreditcruncher.com/2008/07/is-credit-crunch-new-great-depression.html
The global nature of our current economy is obvious, the dangers have yet to be tested. There are significant differences between the situation in the Great Depression and our current position, but the crisis could go either way, and there are no real safety nets in a free market economy...
We can only say that certainly there will be job losses and they will continue beyond the end of the recession, 25% unemployment is a daunting figure, and honestly there is nothing in place to prevent that being a reality - nobody can guarantee that there will not be 25% or even 30% unemployment however horrific that might seem. The realities are:
The economy will slow down as people spend less and jobs will be lost. This scenario will continue until the economy levels out and begins to recover generating spending from somewhere...
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