week three check point - companies the luxury to under pay...

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Check point week three By Ronald Ahrens Historical Example of Labor Supply and Demand I choose was the one during the great depression. What lead to it was a catastrophic fall in the stock market caused many individuals to lose everything they had? Companies folded and closed many of the work force was left without jobs and without any way to make money because back then there was no unemployment insurance. During this troubled time many people were just trying to scrape together enough money to buy food. Some individuals were taking lesser paying jobs than what they were
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qualified for in order to provide for their family. Because of the economic issues the supply of labor was very high and the demand very low. In a situation where the supply is greater than the demand there are negative effects on the labor force. Wages are forced lower and positions are scarce as we see now in the labor market we live in. The high labor supply allowed many
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Unformatted text preview: companies the luxury to under pay for qualified better labor. Because of the crash in the stock market companies were forced to cut jobs and save as much money where they could. With such a drastic change in the economic well being of the country many companies could not make it and closed their doors and many jobs were cut forcing a substantial spike in unemployed workers. While some businesses made it through the initial fallout in the economy they could give their people lower wages in order to stay in business. Most of the people still employed dealt with many negative changes just to keep their jobs. Lower wages would be one of the first changes followed by many company benefits. Because the great depression lasted many years the supply of labor stayed high which helped contribute to a slow economy. The effects of the high supply of labor resulted in the demand to stay low for many years....
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This note was uploaded on 04/06/2012 for the course XECO/212 XECO/212 taught by Professor Troymahone during the Spring '11 term at University of Phoenix.

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week three check point - companies the luxury to under pay...

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