Posted by Buzzman72 on January 16, 2009 at 17:21:44 from (74.129.220.44):
In Reply to: Re: Deflation? posted by Ken McCubbin on January 16, 2009 at 16:30:39:
That's exactly what happened to mom's family during the Great Depression. They were doing OK with the family farm, selling milk, eggs, etc. So at the urging of a brother who was a schoolteacher [and also a non-participating partner in the farm], the family went into debt to expand the operation [bought more cows]. They got caught with debt when prices tanked.
Grandma said they had to think twice about buying penny candy for the kids. Grandma's dad ran a grocery in a nearby town, and she said that if her dad hadn't extended them credit on the groceries, they might not have made it through the Depression with the farm.
In 1943, Grandma and Grampa sold the family farm, paid off the brothers' their share, and bought a smaller, 13-acre place five miles down the road. That's the farm that's still in the family today.
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