Historical ExampleXeco Wk 3

Historical ExampleXeco Wk 3 - businesses any money. Now,...

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The Great Depression hit at the end of 1929 and was a result of an unequal distribution of wealth, an unstable economy, and the eventual stock market crash. We can see how the laws of labor supply and demand were influenced by the United States economic devastation. The law of labor supply says that lower wage rates lead to fewer available employees and more voluntary unemployment. This is the time that employees hire more employees because they are paying them less money. The law of demand says that the higher the wage rate, the fewer the employees companies will higher. During The Great Depression, blue collar workers took one of the largest hits. Once the stock market crashed, people panicked and withdrew their money from the banks. This led to banks having to close their doors. Once the banks were out of business, there was no one to lend
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Unformatted text preview: businesses any money. Now, factories and plants that were going to rely on banks to get them through the financial crisis had nowhere to turn. It was not long before factory, plant, and other blue collar laborers were out of work. This sector was probably one of the hardest hit during The Great Depression. Work was not the only thing that was nearly nonexistent during The Great Depression. With unemployment reaching as high as 38% in some states and over 12,000,000 out of work by 1932, there was no medical care. People could not afford to see the doctor and children, adults, and the elderly passed as disease and starvation took hold. Even now during our current recession the unemployment rate in some states tops 12% making it feel more like a Depression....
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