Historical Example of Supply and Demand: The Great Depression Mario Reyes
There is been different times in the past where specific events had affect the course of labor supply and demand. Each of these events shares characteristics that make the labor supply and demand to build a process to improve in how to overcome difficulties or even new challenges. Some events where labor demand and supply was affected are the Great Depression, the Luddite Revolt, the Black Death, and the technology boom of the 1990’s. In the Great Depression, the main element for this event was the crash of the U.S. stock-market in 1929. This economic event is one of the most notorious crises in the U.S. history, mainly because of the effects that this event caused to the labor supply and demand market. Unemployment was one of the most severe effects from this event, where some evidence shows that in 1932 to 1933 there were approximately 16 million unemployed, which at that time this count as one third of the total labor force available. In this case one of the mains factors that shift this labor supply and demand “disequilibrium” was the excessive amount of productive capacity in comparison with the ability from the country to consume, therefore job opportunities were not there. This labor supply and demand disequilibrium last bout 7 to 8 years until different government projects start to shift the demand of goods and services close to the supply area that helped to mitigate this crisis and to recover many of the jobs necessary for the entire population.
The Great Depression (2008) the Columbia Encyclopedia Retrieved on January 15, 2011 from http://www.credoreference.com/entry/columency/great_depression
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