Historical Example of Labor Supply and Demand

Historical Example of Labor Supply and Demand - products....

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Running head: SUPPLY AND DEMAND OF LABOR 1 Historical Example of Labor Supply and Demand Darrell Dannelley XECO/212 September 23, 2011 Troy Mahone
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HISTORICAL EXAMPLE OF LABOR SUPPLY AND DEMAND 2 Historical Example of Labor Supply and Demand “The Great Depression” started in 1929 and lasted until 1941. It began with the dramatic drop of the United States’ stock market. Supply and demand played a large role in bring the depression. In order to have a stable economy supply and demand need to be equal. As a result of not enough demand for the large amount of supply there were many products that did not get consumed. Factories and business had to lay off workers because of the small demand of the products. Much of the overage was a result of technological advances on how goods were produced. Goods were produced more efficiently but the wages did not increase. Workers would work longer hours with smaller pay. With the lower income families could not afford to buy
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Unformatted text preview: products. The laws of supply and demand made the industries drop their level of output to compensate for their loss of overall profit. This resulted even less work, work, money, and jobs. HISTORICAL EXAMPLE OF LABOR SUPPLY AND DEMAND 3 The Great Depression was ended when America entered in to World War II. The war caused a demand for war material. Other countries like Britten need war goods. This demand created many jobs. The new jobs pervaded a new source of income that enabled families to start spending money again. President Roosevelt new policies helped change things in the economy along with creating new agencies to help. This created more jobs. The demand for goods increased to level out with the supply and the labor market increased. Reference Smiley, G. (2008). "Great Depression." The Concise Encyclopedia of Economics. Retrieved from http://www.econlib.org/library/Enc/GreatDepression.html...
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