WorthvieW article: Why We’re Richer Today Than 100 Years Ago – Insights from Toronto-based Financial Planner Ed Rempel

Most of us know life is easier today than it was a century ago, but do we really understand why?

In my latest article for WorthvieW, I unpack the hidden forces that have quietly shaped modern prosperity, and what they reveal about building sustainable wealth in the decades ahead.

Inside, you’ll discover:

• How the middle class became wealthier than royalty once was.
• The core systems that fuel innovation and financial growth.
• Why understanding these forces can change how you plan your future.
• The overlooked connection between productivity, technology, and rising living standards.
• A fresh perspective that can change how you think about long-term wealth.

When you zoom out, the course of human progress is truly remarkable.

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Why We’re Richer Today Than 100 Years Ago

In the last 100 years, human prosperity has risen to a greater level than anything we could have imagined in the early 20th century. From average lifespans to living standards, the change has been dramatic. And although the world still suffers from inequality and poverty pockets, the overall trend is clear: we are wealthier, healthier, and better prepared in just about every way. According to Toronto-based financial planner Ed Rempel, this wealth surge is no coincidence.

“Wealth growth over the last century largely happened due to systems rewarding productivity and innovation. There are fundamental forces behind this change, and they’re not going away,” says Rempel.

For example, middle-class Canadians today live better lives than royalty in 1900 in most measurable ways. Better healthcare & life expectancy, home comforts like electricity, heating, air conditioning & plumbing, better entertainment and faster travel.

Several key components underpin our modern prosperity. These include free enterprise, the spread of price information, technology advancement, affordable energy, and human innovation.

One of the most fundamental forces has been the development of free enterprise economies, in which people and businesses can create, exchange and profit. A hundred years ago, many of the world’s regions were still subject to colonial economies or centralized states that offered few opportunities for entrepreneurship. Today, market economies rule most of the world, creating environments where businesses can succeed. According to Innovation, Science and Economic Development Canada, more than 68% of Canada’s private labour force is employed by small businesses. That’s a stark testimony that enterprise has become the primary driver of employment and economic growth.

“Free enterprise is like a magnet for human ambition. It gives people a reason to invest, innovate, and push boundaries. That incentive is critical,” says Rempel.

Just as important is the availability of price information, which technology quickly made possible. Prices signal scarcity, demand and opportunity. A century ago, accessing accurate price information involved navigating constrained markets, local knowledge, and time delays. Today, a global commodities trader, a small business owner in Vancouver, and a consumer in Halifax can all make real-time decisions based on updated pricing data. That democratization of information allows for smarter economic behaviour across the board.

Another big part has been innovation in products, systems and services. Advances in medical treatment have been key. In 1925, Canadians could expect to live only 60 years. Today, it exceeds 82. There are many diseases once considered deadly that are now either manageable or even preventable. Innovation in supply chains, communication and logistics has also transformed how people live and work. Money itself has been remade, even finance. Thanks to the proliferation of investment options, insurance vehicles and banking services, families have created wealth more securely.

“Innovation is about solving problems in new ways. Wealth becomes greater when we figure out how to do more with less or make new value together,” says Rempel.

Energy is another critical factor. The 20th century was powered by cheap and abundant energy, first from coal, then oil, gas, and more recently, renewable sources. The average Canadian household today consumes more energy than it did a century ago, not out of waste, but because of productivity. Homes are bigger and more comfortable. Transportation is faster. Manufacturing is more efficient. While debates around sustainability continue, there is no question that energy access has fueled modern wealth.

There is also technology, which unites and empowers individuals in ways never seen before. In 1925, only a small fraction of Canadians had access to a telephone. Today, almost every adult carries a smartphone. Digital tools have compressed time, increased access and connected individuals to global markets from anyone with a connection.

Canada’s economy is an example of these patterns. Canada’s GDP per capita in 1925 was less than $1,000 (in 2024 data, adjusted for inflation). Today, it sits above $75,000. This represents better access to housing, education, healthcare, and life opportunities.

The five forces, i.e., enterprise and price data, innovation, energy, and technology, have created an upward loop of development. The historical context reminds us how far society has come in just a few generations.

“There’s a tendency to focus on what’s wrong right now, but when you zoom out, the course of human progress is truly remarkable. Understanding the forces that created this wealth is the key to protecting and growing it,” Rempel concludes.

That understanding influences how policies are formed, how businesses plan, and how individuals manage their futures. For Canadians, recognizing the sources of our prosperity may be essential to growing it in a rapidly changing world.

Ed