Categories Lifestyle

The Realities Of What Could Happen In A Global Economic Collapse

Since the beginning of time, the world has been a tumultuous place. From wars to disease, there is always stress and the need to be ready for anything. While many people talk about preparing for war or a storm, there are other things you should be ready for. 

But what about a global economic collapse? The realities of what can happen during a financial collapse are pretty terrifying – and while the chance may seem minimal – it is not impossible.

Knowing what to expect if an economic collapse happens can help your family minimize the impact and get through it. 

Rising Mental Health Issues

women with mental health struggles
Depositphotos

With no money coming in and little opportunity, the toll on our mental health can be huge. We can expect more depression, anxiety, and even suicide attempts. The inability to afford mental health care and medications will only worsen this growth.

By preparing yourself now, you can minimize the impact to your mental health. 

Limited Healthcare Options

doctor and nurse having a meeting
monkeybusiness / Depositphotos

An economic crisis can severely impact our healthcare system. The lack of funds to pay staff or buy medical equipment is only part of it. The growing risk of disease and medical needs from other industries not being at 100% can overwhelm our systems.

Be sure to stay on top of your healthcare needs while you can so you can be in your best health at all times.

Imposing of Martial Law

military personnel saluting the flag
DVIDSHUB / Flickr

If we see a lot of riots and disorder, the government may impose martial law. When this happens, you will lose a lot of your rights, and the military will take over to keep things under control.

Many believe this will be something that may never happen – but never say never. 

Increased Power Outages

power lines over water at sunset
GarrettTT/ Flickr

While we are seeing some power outages, this will only increase if there are economic issues. Power companies may not have the means to keep the grid going, which may increase the length and frequency of power outages. 

A generator might be a good option, as well as some solar chargers. 

Rapid Inflation

rolls of dollar bills
Flickr

During an economic collapse, the value of money will significantly decrease. This decrease in value will increase the price of daily goods and services, making things less affordable.

Saving as much money as you can and stocking up on long-term goods will help. 

Increasing Poverty

end poverty graffitti on wall
Flickr

With an economic crisis, jobs will become more scarce. This loss of employment will cause many families to be unable to pay the bills or even afford food. More families may turn to the government for help, which may also be very limited if available at all.

Creating a nest egg, outside of a bank, can minimize your risk of poverty. 

Telecommunications Collapse

smart phone in palm of hand
ota_photos / Flickr

Demand for cell phones and internet use would skyrocket. Providers may need help keeping up with that demand, which can result in the inability to connect with loved ones or even medical resources.

This is one that will be hard to prepare for. If your family is local you can create a “meeting” place and time on a set schedule. This will allow you to connect without the need for a phone. 

Gas Shortage

shell gas station
Jeepers Media / Flickr

Fuel reserves at our gas stations may become depleted. This gas reduction would reduce our ability to get around or find gas to heat homes.  This will reduce public transportation as well. 

There is not much you can do to prepare for this. If your town allows you can store gasoline at your home for emergency use. But gasoline does not last forever and can pose a danger. be sure your bicycles are in working condition for local travel.

Mortgage Defaults and Foreclosures 

home foreclosure sign
BasicGov / Flickr

If families are struggling financially, one of the first bills that is often not paid is the mortgage. An economic crisis will also inhibit the ability to sell a home easily since so many are facing the same economic issues. The inability to pay the mortgage will result in families losing their homes, leaving them homeless.

This all comes back to keeping a small bundle of money you can access at anytime. 

Increase in Homeschooling

homeschooling supplies on a shelf
Lyn Lomasi / Flickr

Many schools rely on funding from their local government. During an economic crisis, this funding may dry up. This can mean larger class sizes, fewer teachers, and the cancellation of extracurricular activities. Parents may turn to homeschooling to ensure their children stay on track with their education. 

Be sure your family has a stockpile of school supplies and learning materials on hand. A small amount of workbooks and educational toys can be a big help if schools should be affected.

Growing Interest in Growing Your Own Food

growing a vegetable garden
pmulloy2112 / Flickr

With families stockpiling their daily needs, home gardening will become more popular. Growing food, raising chickens, and learning to can your food are ways to sustain during a scary time.

Creating a garden is a good idea even without an economic downturn. It is healthier and more cost-effective, and a great bonding experience with the family.

Bartering for Food and Services

bartering eggs
joruba75 / Depositphotos

With goods and services increasing in price, bartering may become a popular activity. If you can offer a service in exchange for a good, it is a way to sidestep spending money. Your skills or goods can become more valuable than cash if the financial collapse is big enough. 

Have a plan for the skills or goods you can offer and be ready to promote those services to help others. 

Social Unrest Escalation

rioting with police
Ale_Mi / Depositphotos

When times get tough, it is natural for protests to take place. While we hope they will stay peaceful, there is a real chance that social unrest and disorder will become the norm. Friends, families, and neighbors may fight with each other to survive. 

Mass Migrations

group of people immigrating
vverve / Depositphotos

During a severe global economic collapse, extreme poverty and lack of access to essential resources like food, clean water, and shelter could drive massive numbers of people to leave their homes and countries for better opportunities and living conditions. While an economic downturn will impact all countries, some may be able to withstand it better than others.

Contamination of Food and Water

plastic bottle in contaminated water
Ivan Radic / Flickr

An economic downturn can impact the services we receive from our water and sanitation treatment plants. Less testing and manpower can lead to tainted food and water, which can cause widespread diseases and illness.

Be sure to keep a stockpile of fresh water and shelf-stable food. This will ensure your family has clean food and water when things get tough.

Skyrocketing Unemployment

unemployed man very stressed with box of office stuff
vadimphoto1@gmail.com / Depositphotos

A collapsed economy will impact businesses, big and small. This will mean many businesses may close or need to lay off large numbers of employees. With an overwhelming number of job losses across all sectors, many will be left jobless. This can be for a long time, too, meaning families will struggle to afford the basics.

Failing Banks

broken piggy bank
Images_of_money / Flickr

Banks may begin failing or imposing strict withdrawal limits on their customers. These restrictions could prevent you from accessing your hard-earned money.

Remember, a piggy bank is a perfect place to store some extra cash and is free to access at any time. 

Breakdown of International Trade

cargo ship in the yantian sea
jdnx / Flickr

A global economic downturn will affect all countries. While we have many trade agreements, these may be affected during a financial crisis. Products manufactured in other countries that we rely on may not arrive.

More Reliance on Communities

community working together to create a garden
AllaSerebrine / Depositphotos

Many will turn to their local communities for help during an economic crisis. Working together, families can help each other by bartering, creating school circles, and more to weather the financial storm.  

 

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