Historical Example of Labor Supply and Demand

Historical Example of Labor Supply and Demand - from 1929....

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Historical Example of Labor Supply and Demand “The Great Depression” was an economic slump in North America, Europe, and other industrialized area that started in 1929 and didn’t end until 1939. The depression started from a catastrophic collapse of stock-market prices on the New York Stock Exchange. From 1929 to 1932 the stock prices in the United States continued to fall, which stressed banks and other financial institutions especially those holding stocks in their portfolios. Banks and other financial institutions were forced into failure by 1933, and because the banks were failing along with general and nationwide loss of confidence in the economy it led to a reduction in spending and demand and of manufacture which caused a downward spiral. By 1932 the unemployment was raising to between 12 and 15 percent and the manufacturing output had fallen to 54 percent
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Unformatted text preview: from 1929. The factors during The Great Depression that affected labor, demand and supply are when the banks and financial institutions were forced to close due to loss in the New York Stock Exchange. Labor was decreased because the banks and financial institutions were unable to stay in business that caused many people to lose their jobs and source of income. The employment rate increased to 15 percent which is much higher than our generation recession and many people loss the confidence to shop and keep up on many services due to lack of income. As a result of consumers not shopping and requesting services as they did before the labor demand on manufactured products decreased. And because the supply wasnt needed due to lack of purchases by consumers the labor supply also decreased. Loretta Campbell 02/24/2011...
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