An animated short about the work of Canada's Mutual Aid Board and the necessity for this cooperation between the Allied countries.
In Canada, a democracy at war, civilian needs must be reduced. There's less to buy, more to spend. Prices go up. To prevent inflation, a price ceiling is fixed and rationing introduced. Money is needed to win the war. The motto: lend your savings to Canada.
A victory loan film urging people not to sell their Victory Bonds. The Plugger family happily dreams of the day after the war when they will be able to make dreams come true with the money from their bonds. But the temptation to cash them in immediately to buy luxury goods is strong. The Pluggers, however, overcome temptation, and are once more on the road to victory.
This animated portrayal of Canada's wartime economy uses simple symbols to present economic processes. The relationship of money, goods and prices is illustrated. There is a concise explanation of inflation and its implications, and of the efforts Canada is making to counteract inflationary trends with taxation, Victory Bonds and price ceilings. (Also released as Eyes Front No. 24.)
The film explains the causes and effects of inflation during wartime. It shows the need for wage and price controls to stabilize the economy. The Mackenzie King government's Wartime Prices and Trade Board is shown keeping a close eye on the Canadian economy and implementing controls before inflation goes out of control.
This film shows how a vicious spiral of inflation would threaten the country if wartime controls were relaxed. In peacetime, prices are stable--raw materials plus transportation plus manufacture plus packaging plus distribution make up the price of commodities. But in wartime bidding starts for goods which are hard to get. Raises to employees to meet higher prices result in higher costs of production. Prices rise again. Without wartime controls, the spiral would mount up, up and up--and ruinous inflation would be the horrible climax.