Duesenberg in a Barn
In 1929, Ford sold 1,507,132 cars. Chevrolet sold 1,328,605. Then came the stock market crash. Sales dropped dramatically each year until 1932, when sales bottomed at 210,824 for Ford and 313,404 for Chevrolet.
But, during that time, a small new market came on stream for the two foremost budget brands—the rich.
Although literally millions of people were hit very hard by the crash, those who had invested wisely retained their wealth. Those who steered clear of the stock market bubble and/or invested in assets that would survive the crash, such as precious metals, were able to continue to live well.
However, they did find that when they drove down the street in their luxury cars, they stood out and became the objects of anger and scorn.
This is an important trait in human nature to recognize—that those who have been reckless with their money and have ended up losing it tend to hate those who were not reckless and have retained their wealth. Perhaps, observing someone who behaved responsibly is a regular reminder that they behaved stupidly.
Whatever the psychology involved, in 1930, those who had fared well soon learned that it was unwise to be conspicuous in their continued wealth. At that point, an interesting but little-remembered development occurred. Such people put their mink coats in the closet, put their jewellery in a safe place and, most importantly, found barns in the countryside into which they could park their Duesenbergs, Cords, and Auburns.
It’s likely that they intended to retrieve the luxury cars once the economy recovered. However, a collectivist government under President Franklin Roosevelt protracted the depression by implementing extensive legislation and policies to “help the common man.” Unfortunately, those actions crippled the business community, turning what might have been a normal two-year depression into one that lasted sixteen years.
During that time, those who had mothballed their luxury cars bought inexpensive cars such as Fords and Chevrolets in order to be less conspicuous. Along the way, chauffeurs became a thing of the past. They were more affordable than ever, but far
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
