Lessons from Depressions

Many lessons can be gained from past economic depressions - especially being respectful of the food and things you have, and not spending beyond your means (using credit) - should be applied to the good times as well as the tough.

Times of economic hardship demonstrate that we are living on limited resources, and are unaccustomed to doing things for ourselves when financial resources are limited. We don`t have to wait for the next economic depression to learn the lessons of gaining skills, connecting with community and simplifying our lives. By engaging in a critical, conscious, simple and sustainable lifestyle we can live a life where less money is necessary.

See frugality as a virtue. There's a difference between being frugal and being cheap. A frugal person is conscious and makes the most of what they have; a cheap person is just focused on not spending money to keep it. During the Great Depression, frugality was seen as a positive trait. During hard times, it'll help you get by, but when things get better, maintaining those habits will help you become more sustainable.

Plus, frugality requires planning, creativity, and critical thinking - all of which are important life skills, regardless of the state of the economy. These lessons from depressions connect the problems of capitalism, economic hardship, sustainability—both environmental and personal, and self-empowered learning.'


When considering economic crisis, it can be beneficial to look back and learn from the Great Depression and other times of financial hardship. There is much to be learned from how others have coped.

Continuing economic hardship is similar to what our grandparents or great-grandparents went through in the Great Depression. While these issues can be a challenge, it may be an opportunity to look back and learn how previous generations coped with tough economic times. We can appreciate their resourcefulness and gain perspective on our own situations and how to live more cheaply, reducing waste. Ask your older relatives and friends how they lived through the Depression. Most will be happy to share how they "made do". If you don't know anyone from that generation, consider volunteering at a local senior center or nursing home. You'll gain tremendous insight.


We can look back into the past for inspiration, throughout history, for examples of what people have done to be thrifty, and spend less money. We can also look at what people are doing around the world to be innovative and effective with accessible Do-It-Yourself projects. There is so much to learn from each other. We can change the focus from constant consumption and the need to be entertained at any costs, to one of conscious engagement and a sustainable and enjoyable lifestyle.

They banded together and helped each other out.
They were flexible.
They found any kind of work.
They looked for multiple streams of income.
They rented out rooms.
They cut costs.
They made do with what they had.
They sewed and patched their clothes.
They avoided banks, and loaned to each other.
They stopped using credit.
They bartered services.
They diversified their savings.
They ate cheap foods were used, such as soups, beans and noodles.
They traded un-needed and outgrown items.
They reduced trendy buying, keeping furniture, decor and appliances for longer periods.
They traded services, such as laundry, repairs, and other skills.
They took responsibility for domestic labor--cooking, cleaning, budgeting, shopping, childcare.
They learned how to live differently.

How to Deal in Times of Financial Hardship

Reduce Expenses.
Quit using credit. If you don't have the cash to make a purchase, then don't buy it. Before purchasing anything, give it a thought, "Do I really need it?"
Nurture positive relationships with family and friends. They will see you through difficult times. But you need to work together and stop being in denial and expect a free ride.
Be honest with your family and friends that you are facing difficult times financially. And don't be ashamed--good people have money troubles. Discover ways to barter and help each other.
Be thankful. Be optimistic. As one Great Depression survivor said, "I never thought a cloud was so dark that I couldn't find a silver lining" (Betty Davison).
Reuse, reuse, reuse. The amount of stuff you have should already be reduced by your limited spending, and you'll always want to think twice before throwing anything away, whether it's into the trash or the recycling bin. Get everyone involved, especially children - hold up an item that you would normally throw away and ask, "How can we reuse this?"
Get into “Doing-it-Yourself.” Change the oil in your car.
Alternatively, if you want to develop a good relationship with your auto mechanic, see if you can barter - perhaps an oil change in exchange for a meal.
Change the way you think about wealth, and possessions and status and “keeping up with the neighbours.”