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In modern days, economic collapse is one of the most likely disasters that people all over the world must contend with. Even in an economic stronghold such as the United States, the possibility of economic collapse is very real.
Now when I say economic collapse, I don’t mean a bad recession where the stock market dips and unemployment goes up a few percentage points. I’m talking about a full-blown economic disaster like the Great Depression or worse, where unemployment hits 30–50%, the supply chain breaks down, and formerly middle-class families are forced to skip meals. In these situations, crime skyrockets, people’s savings disappear, and the social fabric starts to unravel.
This is exactly what happened in countries like Argentina, Venezuela, and Zimbabwe. In each of these cases, ordinary people woke up one day to find that their money had lost its value, jobs had vanished, and their government couldn’t save them. And it’s worth noting that in every one of those countries, most people believed “it could never happen here”… until it did. So could it happen in America?
Well, the national debt continues to skyrocket, regardless of who is president. Prices continue to rise faster than people’s income, making it harder and harder to get by. The financial system is more fragile than ever, propped up by speculation, endless money printing, and digital infrastructure that’s increasingly vulnerable.
A major cyber attack, especially one powered by AI-enhanced hacking tools, could take down banks, freeze accounts, or shut down commerce in a matter of hours. And once that domino falls, it’s not hard to imagine how quickly things could spiral out of control.
Aside from the financial consequences, though, there are plenty of other scary things that follow in the wake of an economic collapse. This article is based on what has actually happened in other countries that have experienced true economic collapse and why it’s so important to prepare.
1. Kidnappings Increase
Countries that experience an economic collapse typically see a spike in kidnappings. Kidnapping a person of wealth and demanding a ransom is one way for desperate people to get money.
And it isn’t only the wealthy that are at risk. Desperate kidnappers will take anyone they can in the hopes that someone will pay the ransom, or they’ll simply sell them into slavery. They’re mostly likely to attempt an abduction outdoors when no-one else is around, but they could also attempt to kidnap someone from their home.
Related: How to Prepare for a Home Invasion
2. Pets Go Missing
Even if you can afford to continue feeding your pets during an economic collapse, there’s no guarantee that they will be safe. Few people have the skills or resources to hunt wild animals when food is scarce. Domesticated animals, however, make for much easier targets.
If people eating dogs and cats in order to survive sounds far-fetched, there are plenty of examples that prove otherwise. For example, just look at Venezuela where people are hunting dogs, cats, and pigeons.
3. Water Quality Drops
Private citizens are not the only ones affected by an economic collapse. State and local governments feel the strain of economic downturn as much as anyone, if not more. When the funds simply aren’t available, even some of the local government’s most important duties such as ensuring access to clean drinking water are often neglected.
And even if they do clean the water, they won’t necessarily do a good job. For example, in The Modern Survival Manual, author Fernando Aguirre talks about how after the economic collapse in Argentina, his local water company cut corners by simply dumping lots of chlorine into the water. So much that they issued a warning that the water should not be consumed by pregnant women or children under 3.
Related: 17 Ways to Purify Water
4. People Riot In The Streets
When people are desperate and angry, they often start rioting, and these riots can quickly become dangerous as people take advantage of the chaos to get away with all sorts of crimes from robbery to vandalism to murder.
If caught up in a riot, it’s essential to make your way to a less crowded area or indoors as quickly as possible. You don’t want to get trampled, and you don’t want the police to think you are one of the rioters.
Related: How to Survive a Riot
5. Carjackings Become More Common
In desperate times, robbing a person’s car is typically safer than robbing a person’s home since the individual being robbed is much less likely to be armed inside their vehicle than they are inside their home.
One common tactic used by carjackers is to throw rocks, bricks, or Molotov cocktails at the windshield of a moving car in order to get the driver to pull over.
If you’re in a dangerous area when this happens, your best course is to just keep driving. Stopping for this tactic, or any other tactic that carjackers use (such as standing in the middle of the road to try to make you stop) could prove incredibly dangerous.
Related: How to Survive a Carjacking
6. Hospitals Become Overcrowded
Due to factors such as no garbage pickups, unclean drinking water, the spread of disease, inability to afford medications, and a spike in violent crimes, people tend to visit hospitals much more frequently during an economic collapse.
This leads to hospitals becoming overcrowded and unable to take care of everyone who walks through the door. Oftentimes, people die while waiting for treatment that would have saved their lives.
Related: 10 First Aid Skills for When Hospitals Are Overwhelmed
7. Gasoline is Rationed
In the wake of an economic collapse, going to the gas station to fill up may not be a possibility. Gasoline will likely be rationed, if it’s even available in your area. Of course, without gasoline, escaping a dangerous location or situation becomes much more difficult.
If you depend on gasoline to run a generator after the power goes out, not having gasoline could be an even bigger problem.
Related: How to Store Gasoline so It Lasts for Years
8. Banks Close
One of the first things people do when the economy collapses is rush to the bank in order to withdraw all their funds. One thing many people don’t realize, though, is that banks don’t keep enough cash on hand to pay out anywhere close to the amount of money they owe.
When there’s a run on the banks, banks simply close their doors, leaving people unable to access the money that is rightfully theirs. An event like this could lead to panic and a sudden uptick in crime.
9. Terrorist Attacks Become More Frequent
Should the U.S. economy collapse, the country’s enemies will be left smelling blood in the water, especially if hyperinflation or lack of funds force us to withdraw from countries like Afghanistan all at once. Emboldened by the country’s economic ruin, terrorists are likely to ramp up their attacks.
In addition to increased terror attacks, there is also the possibility that America’s more powerful enemies such as North Korea and China may see the country’s economic collapse as a chance to strike us while we’re weak.
Related: Surviving a Terrorist Attack
10. Gang Activity Increases
Left with few other options, more and more people turn to criminal activity during an economic collapse. In addition to desperation, another factor fueling gang activity during times of economic downturn is the fact that gangs know the city will have fewer resources available to combat their activities.
Of course, with increased gang activity comes increased danger in the streets as rival gangs fight for control of territory in a time when making money is more important than ever.
11. Interstate Trucking Halts
Factors such as an oil embargo or a massive increase in robberies could grind interstate trucking to a halt in the event of an economic collapse. Unable to rely on trucks for transportation, stores would quickly run out of food and other essential supplies, leaving people who do not have supplies of their own stored up with few options for survival.
Related: What Happens When The Trucks Stop?
12. Martial Law is Enacted
In an attempt to curb some of the violence and chaos that ensues after an economic collapse, the government will likely enact martial law and turn over the governance of the people to the police and military. In some ways, this could make life safer in extremely desperate times.
In other ways, though, it would rob you of your most fundamental rights and create a power-grab that the government may never come back from.
Related: 8 Things That Can Happen During Martial Law
13. People Eat Almost Anything To Survive
Imagine being so hungry that you resort to eating a dead rat you found in the trash. This sort of thing happens around the world all the time. And in Venezuala, people have been known to steal zoo animals so they could eat them.
Hopefully, by now you realize the importance of being prepared for disaster. Be sure to check out my articles on emergency food storage and cooking without power.
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