Historical Example of Labor Supply and Demand
Rose Fromm
Axia College, University of Phoenix
XECO/212
Historical Example of Labor Supply and Demand 2
Historical Example of Labor Supply and Demand One of the most severe disastrous economic incidents that ever happened was called the great depression which, had formed in 1929 and lasted until 1939. The Great Depression caused many businesses to drastically reduce spending in order to remain profitable, which in turn decreased the demand for labor. There was an excess supply of labor, since many companies laid off workers in order to maintain a normal profit. “The unemployment rate had reached almost 25%; certain sectors, such as certain industries, had unemployment rates of almost 30% to 35%”(Carey Nelson) because of less spending and demand and hence of production. During the great depression the labor demand was decreased and the labor supply was increased, this could have happened by so many factors, such as productivity was decreased and a decrease in profits by many employers; which this had caused a decrease in demand for labor during the Great Depression. Additionally, the rising wages that occurred until the Great Depression increased the supply for labor as many Americans dreamed of living in a middle class life. Unfortunately, the increase in wages did not follow the increase in supply of labor, leaving many potential employees jobless during the Great Depression. The decrease in the amount of disposable income was also an issue, as many Americans became bankrupt after the collapse of the banks. The result of the dramatic increase in bankruptcies caused the supply of labor to increase dramatically, especially in the blue collar sector, due to the fact that many Americans entered the industrial and manufacturing labor markets looking for an entry level employment. The Great Depression ended when President Franklin D. Roosevelt enacted the New Deal legislation and World War II began.
Historical Example of Labor Supply and Demand 3
References
Nelson Carey, (na). About the great depression, retrieved October 7, 2010 from
www.english.illinois.edu/maps/depression/about.htm
References: Nelson Carey, (na). About the great depression, retrieved October 7, 2010 from www.english.illinois.edu/maps/depression/about.htm
You May Also Find These Documents Helpful
-
Topic: Analyze the changes and continuities in labor systems between 1750 and 1914 in RUSSIA.…
- 424 Words
- 2 Pages
Satisfactory Essays -
The most severe depression ever encountered by the Western industrialized world began in 1929 and had reached its nadir in 1933. The unemployment rate was at about 24.9%, with around 13 million Americans not being able to find work, predominantly through no fault of their own. The United States Gross Domestic Product was at its lowest point. Thousands of banks had closed their doors while banks offered no guarantees on the money that they were supposed to be accountable for. The Great Depression negatively affected the entire world; in only 3 short years from the start of the depression, the World Wide GDP had fallen 15%. Beyond the shattered economy, the Great Depression had depleted the morale of a once triumphant nation.…
- 925 Words
- 4 Pages
Good Essays -
This two major event took the economic power from the state government to the federal government. The economy regulation became a federal because the federal government is stronger than the state government and it is more equipped to deal with the vast growing economy. Globalization took the fast-growing economy from local to global, which made America the global economics power. Although these events played out over many decades, they reached their high points during the presidency of Franklin Roosevelt (1933–1945). The Great Depression, brought about by the crash of the stock market in 1929, was one of the most severe economic downturns in American history. Many businesses failed, roughly one-third of the population was out of work, and poverty was widespread. In response, Roosevelt implemented the New Deal, a series of programs and policies that attempted to revive the economy and prevent further depression. The New Deal included increased regulation of banking and commerce and programs to alleviate poverty, including the formation of the Works Progress Administration and a social security plan. In order to implement these programs, the national government had to grow dramatically, which consequently took power away from the…
- 728 Words
- 3 Pages
Good Essays -
For a normal product at a store, we are the demander and the store is the supplier. When it comes to labor, however, we are the supplier and the various businesses are the demanders of our labor. How are our supply and a firm’s demand affected by a real wage increase and decrease?…
- 558 Words
- 3 Pages
Good Essays -
The prosperity of the roaring 1920s left Americans shocked and unprepared for the economic depression that ravaged the country in the 1930s. On October 29th, 1929, the stock market crashed and almost every American was affected. Due to the laissez-faire methods of then president Herbert Hoover the depression worsened sustainably. Luckily in 1933 Franklin D. Roosevelt was elected into office and took action with many programs that influenced the government greatly.…
- 598 Words
- 2 Pages
Good Essays -
The Great Depression was the greatest economic crisis in the Western World. The stock market crashed on October 1929, sending Wall Street up in flames. By 1933, the Great Depression reached a high point leaving over thirteen million Americans jobless (“The Great Depression”). Relief and reform measures were soon put into place to lessen the heavy load the Great Depression created, but America would not fully recover until after 1939.…
- 676 Words
- 3 Pages
Good Essays -
The Great Depression is one of the most misunderstood events in not only American history but also Great Britain, France, Germany, and many other industrialized nations. It also has had important consequences and was an extremely devastating event in America. It was the longest and most severe depression ever experienced by the industrialized Western world. When the New York Stock Exchange crashed in October 1929, the United States dropped sharply into a major depression. The world was in wide demand for agricultural goods during World War I, but they had rapidly decreased after the war and rural America experienced a severe depression throughout most of the 1920's and even on into the 1930's. One of the major losses for agriculture was due to banks foreclosing farm mortgages because the farmers could no longer pay their mortgages. By the early 1930's, thousands of American farmers were out of businesses. Major businesses, however, had to increase profits through most of the decade although wages remained low and workers were unable to buy the goods they had helped produce. The financial and banking systems were very unregulated and a number of banks had failed during the 1920's. Not only did the Great Depression affect the United States as a whole, there were many different effects on both the North and South.…
- 3107 Words
- 13 Pages
Powerful Essays -
The Great Depression was the biggest economic crash that the United States has ever had. After the “Black Thursday” on September 3, 1929 stock market crash and right after that is when Franklin D. Roosevelt took over the new Presidency of the United States. During the Great Depression, millions of people became unemployed and homeless and a huge number of banks failed and closed. The new president Franklin D. Roosevelt, walked into a position that required immediate actions to help a suffering country, and he began to take those immediate actions right away. Since the traditional policies had been based on a set budget, people were afraid to turn too far from the policies. But a set budget was the last thing that the economy needed at that…
- 285 Words
- 2 Pages
Good Essays -
The catastrophic stock market crash on October 24th, 1929 brought about widespread panic and the onset of incomparable consequences for America. From this crash, the Great Depression arose which was a long period of increased unemployment, poverty and deflation. The onset of the Depression left society blaming the government and seeking relief from the increased levels of poverty. Due to society being worried and troubled, the government, in which Republican Herbert Hoover was president, took a conservative approach toward reconciling America’s problems, while Democrat Franklin Delano Roosevelt chose the liberal approach by establishing the New Deal.…
- 1734 Words
- 7 Pages
Powerful Essays -
Starting in 1930, the Great Depression was a time of serious monetary ruin in America. The Great Depression made a great deal of anxiety on Americans monetarily and emotionally. The Great Depression was a monetary destruction in the United States and the world, this was brought about by the tremendous stock market crash. Because of the decrease in value of money, less employments were accessible. Regardless of the fact that you could discover an occupation with many hours, the pay wouldn't be sufficient to provide for your family.…
- 373 Words
- 2 Pages
Satisfactory Essays -
The Great Depression was the deepest and longest-lasting economic downturn in the history of the world. After the stock market crash of 1929, the American economy plummeted. This was devastating for many families. Thousands of people were out of their jobs, and left to starve on the streets. Many were forced to simplify their wardrobes, problems in the education systems arose, and the banking system was destroyed. People turned to the government to help them out of their problems. Hoover and FDR worked to pass relief acts that would boost the American economy.…
- 1432 Words
- 6 Pages
Better Essays -
John Commons, an American economist and dean of labor studies played a major part in noting down the issues during that time and dominated in the field for almost half a century. (Dawley, pg 6)…
- 613 Words
- 3 Pages
Good Essays -
The Great Depression was the toughest and the longest economic recession in the industrialized world, in most of the countries it started in 1929 and lasted till 1939. The Great Depression was the result of many causes; some of these causes are the crash of the stock market, and banks were not able to lend money because huge numbers of people were withdrawing their money. This withdrawal also caused the banks to fail. Another reason is that people were afraid of buying products and services after the stock market crash which lead to a huge decrease in the demand of products and services, this decrease in demands and the unwillingness to spend money made the level of unemployment increase sharply.…
- 120 Words
- 1 Page
Satisfactory Essays -
It was not just one specific factor that caused the Great Depression, there were many factors causing the economy to collapse. It is yet still unknown the main cause of the great depression, it is a question that will remain standing. Although most think the main cause was the 1929 crash of the stock market, still none agreed upon that. The 1929 crash of the stock market was not “the” cause of the great depression; however it was “one” of the causes. The unequal distribution of wealth, the rising unemployment rate and the panic of the American people had enormous effects on the economy. Nonetheless, the 1929 crash of the stock market played an extremely significant role as well.…
- 477 Words
- 2 Pages
Good Essays -
15. U.S. Congress. House. Committee on Labor. Hearings on H.R. 7995 & H.R. 9232, 71st Cong., 2d Sess., Mar. 6, 1930, pp. 26-27.…
- 9483 Words
- 38 Pages
Better Essays