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Lessons from the Recent Past
In the bleak economic crisis of the 1930s, the economist Joseph Schumpeter coined the phrase “creative destruction” to explain the natural cycle of economic cleansing that is necessary to ensure long-term sustainable growth and economic health. In recent times there have been several of these cleansings, or recessions, particularly in the United States. Almost all were triggered by some type of financial market event far removed from the day-to-day lives of those on Main Street and their ability to understand either the substance or the nuance of what it all meant behind the scenes. We in Canada have not been as strongly impacted as those south of the border. However, while our financial system and practices are ...
