It is generally believed that there were five basic causes for the 1930s Great Depression. They were primarily economic.
The next Depression basically will be caused by a growing youth and aging population, both of which will cost a huge amount of money to support, as told in the Oct. 24 Columbian (“Graying American putting communities’ budgets in red”).
The big question is from where will this money come? If it is increased taxes and reduced discretionary spending, all will have less purchasing power. Reduced purchasing power will result in the closing of manufacturing and commercial enterprises, resulting in increased unemployment, the basic economic definition of a depression.
What can be done about it? Nothing until both the youth and aging populations significantly decrease in size, which may not occur until 2050. The 1930s depression caused all to financially sacrifice. Financial sacrifice will again be the cornerstone of the next depression and all had better be prepared. The streets may get crowded with people looking for a soup kitchen.