economics-wk3-Labor Supply and Demand during the Great Depression

Economics-wk3-Labor - L abor Supply and Demand during the Great Depression W hen the stock market crashed in 1929 i t led into a domino effect all

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Labor Supply and Demand during the Great Depression When the stock market crashed in 1929, it led into a domino effect all the way into the 1930’s. Many of us know this time of being called the Great Depression. The Great Depression caused many people to lose their jobs, mostly people in the marketing and manufacturing industries (Michelle, 2006). Gene Smiley states, “25 percent of all workers and 37 percent of all nonfarm workers were completely out of work. Some people starved; many others lost their farms and homes” (Smiley, 2008). People got very cautious with their money after the stock market crash. This caused a surplus in goods and services which should lower the price and increase the demand (Michelle, 2006). This was not the case at this time; the demand for employee’s got less because they were not needed. With nobody buying anything there was no demand and the supply of employment got less. Another factor is that President Roosevelt pushed for companies to play Social Security taxes and
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This note was uploaded on 07/13/2011 for the course ECONOMICS 102 taught by Professor Hynes during the Spring '11 term at Kaplan University.

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