In the Great Depression, it was difficult for ordinary people to live well. The key was how to survive the depression.

1. Before the real depression comes, do not try to catch the so-called Kangbo bottom. Save cash. Of course, it must be stable or promising cash. RMB and US dollars are both good.

2. Save some cash, find some money-making job, earn some money, enrich your cash, and give yourself and your family a decent life.

3. During this period, if there is no opportunity to make money, do not be discouraged or give up on yourself and learn. As long as there is no world war, the depression will not last long. The knowledge you learn will come in handy after the recession is over.

4. Exercise and extend your life. The greatest wealth of ordinary people is actually themselves. Health is the basis for fighting deflation. Physical health is also an investment in oneself. A large part of Sima Yi's success is attributed to his body. Therefore, we are creating value and wealth. At the same time, you should exercise yourself and maintain a healthy lifestyle.

The consequences of deflation:

1. It leads to a decrease in total social investment. On the one hand, deflation will increase the real interest rate and the actual cost of social investment will increase, which will lead to a decline in investment. On the other hand, due to the expected price decline, the expected return on investment will decrease, which will also reduce the willingness of enterprises to invest;

2. Reduce consumer demand. During the deflation process, falling prices will continue to increase the actual purchasing power of money. , people will postpone payment as much as possible, leading to a delay in consumer spending and a reduction in the scale of consumption;

3. It affects the redistribution of social income. Deflation will transfer government income to enterprises and individuals. It is mainly achieved by lowering income taxes; it will cause enterprises to suffer losses from falling prices; it will increase workers' real wages; it will result in a redistribution of funds that is beneficial to creditors and not beneficial to debtors.

In simple terms: deflation means that people have pessimistic expectations about the future, so they reduce their consumption. The reduction in consumption has led to a relative excess of production, so companies have begun to reduce production, reduce the scale of investment, and start laying off employees. This will lead to a reduction in total social output and a shrinking GDP.

How do ordinary people deal with deflation?

1. Work hard to make money. Because of deflation, people will delay consumption, leading to insufficient consumption power, and companies will lay off employees. Making money will be more difficult than before, but because money is becoming more and more valuable. So we have to work hard to make money. Even if you can't make more money than before, you should still ensure that you don't lose your job.

2. Purchasing high-quality assets is the so-called bargain hunting. Goods will become cheaper and cheaper, and may even fall below their value. Many companies and individuals will go bankrupt. If you have a certain amount of cash, you can choose an opportunity to buy some cheap assets, such as your house.

3. If you don’t have the ability to work hard to make money, and you don’t have much savings. Then what you can do is exercise, study more, survive the cold winter, and look for opportunities.

To borrow a line from Game of Thrones:

Winter is coming, but no one cares. If you care, you win.

In layman’s terms, the biggest harm of deflation is the economic downturn. People’s incomes are reduced, so they dare not spend money on consumption and investment. So if deflation comes, how should ordinary people deal with it?

Deflation is not terrible!

If deflation really occurs, CPI will become negative. In this way, people’s thinking will change from what it is now.

Under inflation, no matter how high the bank deposit interest rate is, if If the CPI remains high, the interest rate on deposits may become negative. Under deflation, no matter how low the interest rate on bank deposits is, if the CPI is negative, the deposits will still increase in value.

In short, under inflation, people feel that "money is worthless", and under deflation, the opposite is true, "money is more valuable." However, because deflation is accompanied by economic downturn , people's income may also decrease, because people will be more afraid to spend money on consumption and investment. In this case, the most important thing is to ensure the safety of existing assets, first preserve their value, and don't want to appreciate at the beginning

"Frankly speaking, if deflation really comes and the economy goes down, how can there be eggs in the nest?" Therefore, if deflation comes, investors will Conceptually, safe value preservation is the first choice. That is the best way to manage money, perhaps starting a business and investing in yourself. Otherwise, bank financial management is relatively safe.

In the process of rising housing prices in the past decade or so, one of the reasons is that rapid economic development will inevitably be accompanied by inflation, and housing prices Rise is also a product of inflation. If ordinary people want to deal with inflation, they must first track and grasp the inflation rate. Generally speaking, the inflation rate can be approximated by the increase in the consumer consumption index, which is CPI data.

Judging from the CPI data in January 2020, the CPI index increased by 5.4% year-on-year, which means that prices increased by 5.4% compared to last year. You can think of this indicator as the inflation rate.

What we ordinary people have to do is to work hard to learn work skills, work hard, and work hard to make money. Because whether it is through tightening or inflation, it has nothing to do with us. The biggest impact is on those with a net worth of more than one million!

Recently, the Great Depression has become an increasingly popular social topic. There are too many concerns about whether the Great Depression will happen or how to deal with the Great Depression at a macro level. For us, in fact, It doesn't make much sense.

No matter what happens, the world will eventually move on. As ordinary people, we have to consider more personal and family risks. What should we do if the Great Depression occurs.

In the market cycle, a big rise must be followed by a big fall, and a big fall must be followed by a big rise. The stock market is like an ocean, always ebbing and flowing.

Therefore, we can understand that the Great Depression will eventually pass, but it will also take a certain amount of time.

What we have to do is how to survive this period of time.

Waiting should not be in vain, just like what I saw in some articles - "I feel like I haven't done anything in the past two months, and it has passed. ." This is waiting in vain, passive waiting, which does not produce any value.

Waiting should be active waiting, and it should be able to help you accumulate energy. Only in this way, when everything returns to normal, will you be able to accumulate a lot of experience.

Once the Great Depression occurs, you must keep your job, even if it is an ordinary and hard job. If you have a job, you will have income, and if you have income, you will have hope.

Under the current economic situation, I think it is not correct to say that deflation is becoming increasingly severe. In fact, current social inflation has always existed and continues to exist. If we talk about deflation, it probably only shrinks our wallets. . . Especially now due to the impact of the epidemic, in the post-epidemic era, it will be more difficult for ordinary people. As ordinary people, how do we deal with the current economic crisis? Give some suggestions.

First: Don’t increase leverage easily. Because the economy seems to be getting harder and harder, various consumer loans are now emerging in endlessly, and the interest rates are so low that people can’t help but want to take advantage of them. But you must remember not to add leverage easily, including credit cards, Huabei, borrowing money, etc., that encourage people to spend ahead of time. You must measure your own ability before spending. It is even more undesirable to invest in projects with higher risks through leverage.

Second: Allocate hard assets to resist risks if you are able. . For example, real estate in first-tier cities or key cities is still the most risk-resistant asset at present. You can purchase gold or gold ETFs appropriately, and you can also get good returns during an economic recession, or at least preserve the value of your assets. Others, such as investing in the CSI 300 and being a shareholder of a leading company, are also ways to resist risks.

Third: Work hard to improve your abilities. This is also the most important aspect. In the current situation, with a stable job, you can outperform most people. If this job can be improved, then you are a rare and outstanding talent. Loving work may be the most important thing the epidemic has taught us. Treat your work well, and your work will reward you with the same results. In this process, you must continue to learn and improve your personal abilities. Ability is your best asset, and it is also an asset that can continue to bring high returns. Never stop improving yourself!

For ordinary people, we can cope with all difficulties by doing what we can do right now, being down-to-earth, not being too ambitious, having a house to live in, food to eat, good health, and a harmonious family. Let me encourage you!

First of all, prepare more liquid funds, which can be used to purchase highly liquid financial products such as monetary funds and treasury bond reverse repurchases. Secondly, use some time to improve your knowledge and abilities and find two side jobs. Secondly, in life, don’t worry too much about how to live your life. Life is not easy. You should be generous with basic consumption and think more about how to make money.

Finally, I believe that our motherland must have ways and means to deal with the current economic environment. Our motherland has grown up in such an environment or even a worse environment. These are nothing to worry about. Our motherland will become stronger and stronger. ,rest assured!

For a long time, the dangers of deflation have been underestimated and considered to be far less than the threat of inflation to the economy. However, the historical lessons of deflation and the grim reality of global deflation force people to realize that deflation, like inflation, will cause serious harm to economic development. Moreover, it is difficult for policymakers to prevent deflation from occurring or to reverse the trend.

1. The economic recession caused by accelerating economic recession and deflation manifests itself in three aspects:

First, the sustained and general decline in prices causes the price of enterprise products to fall, and the profits of enterprises to decrease or even suffer losses, which will severely hit the income of producers. The enthusiasm makes producers reduce production or even stop production. As a result, the economic growth of society is suppressed.

Second, the sustained and general decline in prices will increase the real interest rate, which will benefit creditors and harm the interests of debtors. Most of the debtors in society are producers and investors. The increase in debt burden will undoubtedly affect their production and investment activities, thus having a negative impact on economic growth.

Third, the reduction in corporate profits and production enthusiasm caused by falling prices will increase the unemployment rate, the actual employment rate is lower than the full employment rate, and the actual economic growth is lower than the natural growth.

2. Leading to a shrinking of social wealth

3. The negative effects of distribution appear

4. May trigger a banking crisis In contrast to inflation, deflation benefits creditors and harms debtors. Deflation makes money more and more expensive, which actually increases the debt burden of borrowers, making borrowers unable to repay loans, causing banks to form a large number of non-performing assets, and even causing banks to fail and the financial system to collapse. Therefore, many economists point out: "Currency appreciation is the single cause of all economic problems in a country."

Be diligent and thrifty, wait for the opportunity, accumulate talents and knowledge, and make progress when the time comes.