I am Chloe. To understand our economy today, we have to look at the trends that shaped the last forty years. Since nineteen eighty two, Canada and the United States have been on a wild ride of technology and global trade.I am Liam. We are going to explore the dot-com bubble and why everyone thought the internet would make them millionaires overnight in the late nineties.And I am Noah. We will also talk about globalization and how giant American companies have changed the way we buy everything from shoes to software.I am Maya. Finally, we will see how the value of our Canadian dollar fluctuating against the United States dollar affects your ability to travel and buy things online. Let us dive into the history.Looking back at the Canadian economy since nineteen eighty two, we see a pattern of growth followed by sharp recessions. One of the most famous trends was the rise of consumerism. People started buying more than ever before, often using credit cards. This led to a huge demand for new products. In the late nineteen nineties, this reached a fever pitch with the dot-com bubble. Investors were pouring billions of dollars into any company that had a dot com in its name, even if the company was not actually making any money. When the bubble burst in the year two thousand, many people lost their life savings. The lesson here for your financial planning is simple: if an investment sounds too good to be true, or if everyone is rushing into it without understanding it, be very careful. Diversifying your money is the best way to avoid being hurt by the next bubble.During this same period, we saw the increasing power of American transnational corporations. These are massive companies like Walmart, Amazon, and Apple that operate in almost every country on earth. This is a key part of globalization. The pros of globalization are that you can buy high quality products for a lower price because these companies can produce things in huge quantities. However, there are cons too. Globalization has contributed to increasing economic inequality. While the owners of these giant corporations become incredibly wealthy, many local manufacturing jobs in Canada and the United States have disappeared as work is moved to countries where labor is cheaper. For you, this means the job market is much more competitive and global. You are not just competing with someone in your town; you are part of a global workforce.We also have to talk about the dark side of these trends, like bank fraud and the financial crisis of two thousand and eight. This started in the United States when banks gave out loans to people who could not afford to pay them back. When those loans failed, it caused a domino effect that crashed economies all over the world. Even though it started in the United States, Canada felt the impact as our interest rates fluctuated wildly to try and save the economy. When interest rates are high, it is harder for people to pay off their credit cards or student loans. This history shows us that our economy is deeply connected to our neighbors. What happens in New York or Washington eventually makes its way to Toronto and Vancouver.One of the most direct ways you feel these global trends is through the value of the Canadian dollar. The value of our dollar fluctuates based on things like the price of oil and how well our economy is doing compared to others. If the Canadian dollar is strong, one hundred Canadian dollars might be worth ninety five United States dollars. This is a pro for you if you want to buy a new laptop from an American website or take a trip to Disney World. But if our dollar is weak, that same trip becomes much more expensive. The price of consumer goods like fruit and vegetables often goes up when our dollar is weak because we import so much of our food. A great tip is to keep an eye on the exchange rate if you are planning a big purchase from another country. Timing your buy could save you a lot of money.The trends since nineteen eighty two prove that the economy is always changing. From the tech bubble to the rise of global giants, each event teaches us something about risk. Being a smart consumer means understanding that the world is small and our finances are linked to events far away. Whether it is a border closure or a new technological breakthrough, these developments will affect the prices you pay and the jobs you can get. Take some time to read about the different recessions mentioned in this chapter to see how different people were affected. Some lost their homes, while others found new opportunities in the changing market. By staying informed, you can make sure you are on the winning side of the next big trend. We will see you in the next lesson to talk about how the government handles these big problems.
