Bank failures caused many people to lose their savings. There were no credit cards or ATMs back then so people didn't have money. Lots of businesses closed due to lack of customers and lack of cash. The money was backed by gold and was fixed at something like $32 to the oz. The Government did not create fiat money. The Governments response was to create the WPA and create jobs so people could EARN money.

Today It seems more likely that the Government would create money and give it away in order to stimulate the economy. That would and has always resulted in inflation. In the late 70s under Jimmy Carter there was a recession coupled with inflation. The government printed money but the economy was slow to respond, so they coined the term 'Stagflation'. The government was the cause of the problem.

Inflation was rampant due to the cost of the Vietnam War. I remember Gerald Ford, (who served out Nixon's term after he resigned) came out with his corny button 'WIN' for everyone to wear. WIN stood for 'Whip Inflation Now'. This was after Nixon had tried to impose price and wage controls on the country. The government was the cause of it all. The bills from the Viet Nam war were due, and Nixon made the decision to send green backs instead of gold to the foreign countries the US has borrowed from. The countries objected, but they took them. Then Nixon went to the Saudis and made a deal to defend their country against any attack as long as they traded oil in US Dollars. That was the birth of the petro dollar. Now the dollar is pegged to the price of oil.

Once the world stops trading in petro dollars, then there will be hyper-inflation. For now there will be inflation because the DODO bird in the white house has caused fuel prices to triple. Everything is shipped by trucks that burn diesel, so the prices of everything will go up. Keep your pantry stocked and you will do fine. Be ready to cut back on luxuries in a moments notice.

Bank failures caused many people to lose their savings. There were no credit cards or ATMs back then so people didn't have money. Lots of businesses closed due to lack of customers and lack of cash. The money was backed by gold and was fixed at something like $32 to the oz. The Government did not create fiat money. The Governments response was to create the WPA and create jobs so people could EARN money.

It seems more likely that the Government would create money and give it away in order to stimulate the economy. That would and has always resulted in inflation. In the late 70s under Jimmy Carter there was a recession coupled with inflation. The government printed money but the economy was slow to respond, so they coined the term 'Stagflation'. The government was the cause of the problem.

Inflation was rampant due to the cost of the Vietnam War. I remember Gerald Ford, (who served out Nixon's term after he resigned) came out with his corny button 'WIN' for everyone to wear. WIN stood for 'Whip Inflation Now'. This was after Nixon had tried to impose price and wage controls on the country. The government was the cause of it all. The bills from the Viet Nam war were due, and Nixon made the decision to send green backs instead of gold to the foreign countries the US has borrowed from. The countries objected, but they took them. Then Nixon went to the Saudis and made a deal to defend their country against any attack as long as they traded oil in US Dollars. That was the birth of the petro dollar. Now the dollar is pegged to the price of oil.

Once the world stops trading in petro dollars, then there will by hyper-inflation. For now there will be inflation because the DODO bird in the white house has caused fuel prices to triple. Everything is shipped by trucks that burn diesel, so the prices of everything will go up. Keep your pantry stocked and you will do fine. Be ready to cut back on luxuries in a moments notice.