Technology spending creates inflation

  If the population is largely devoted to producing grain and I allocate half of which to start producing 3d televisions, that would reduce the country's grain output by half but also increase number the televisions produced. Grain prices would jump by half thus the production of new tv sets only leads to less food being put on the table.

  The only way to circumvent that is to increase imports to make up for the shortfall in grain. The same logic if we reversed it. If the population is largely devoted to producing tv sets and I allocate half of which to producing grain. There will be less tv sets produced and there will be more grain. The price for tv sets would increase, which can only be circumvented by importing more tv sets.

  The roaring 20s was not driven by technology. It was driven by cheap money.

  The value of the dollar plummeted during the roaring 20s. It was not until the great depression did the value of the dollar begin to claw back some of its original value. The great depression gave strength to the dollar because people will sell their children for a buck.

  Just to reiterate, the government decides the supply of dollars there are in the country. Thus they fueled the roaring the twenties just like they starved the country into the great depression.