Thursday 8 April 2021

Could a post-pandemic Canada lead to another Roaring '20s?

Global News shows that the roaring 20s swept across America after the deadly 1918 flu pandemic - the similarities then and now are striking. 

Technological advances were drastically changing people's lives, the stock market was soaring and people were ready to cut-loose and spend money. 

It seems that Canadians have been saving like never before. Collectively, Canadians have stockpiled $200 billion's worth with a lot of that finding its way into the stock market and to pay down debt or to renovate or buy homes, but economists estimate there's over $100 billion just waiting to be spent. 

However, supply chain experts say headaches are in store. A flurry of shoppers may mean shortages and economists warn if shoppers are spooked by higher prices they may rush out to buy goods before prices skyrocket, creating shortages and stoking inflation.

In economics, "inflation" is a general rise in the price level in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money - a certain loss of real value in the medium of exchange and unit of account within the economy.

"The Roaring Twenties" refers to the decade of the 1920s in Western society and Western culture. It was a period of economic prosperity with a distinctive cultural edge in the United States and Europe, particularly in major cities such as Berlin, Chicago, London, Los Angeles, New York City, Paris, and Sydney. This period saw the large-scale development and use of automobiles, telephones, films, radio, and electrical appliances in the lives of millions in the Western world. Aviation soon became a business, as well.

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