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Supply and Demand of Labor

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SUPPLY AND DEMAND OF LABOR

XECO/212

04/20/2012

Jason Mackey

Looking back into the U.S. history and certain things that happened throughout the economical history of this country we can see some extreme changes in the economic make up of the country. In the 1930’s the country suffered from a devastating economic failure called the great depression. What happened during this time is the stock market took a major hit and basically put the country into an economical tail spin. People all across the country lost millions of dollars which caused the demand for all kinds of products and services to drop significantly. At the same time this caused a extreme overstock of services and goods. What occurred next is many people became unemployed because their trade or product was not considered needed. This unfortunate time in history caused people to lose their jobs at an extreme level. This had a chain reaction on the economy that many did not see coming. When one job was lost, this had a cascading affect on the entire business world. At a point in time people thought they could travel out west to find jobs when this was not the case the catastrophe had an impact on the entire country. When people have no money to buy things and no way of supporting themselves bad things begin to happen. People begin losing their homes and starvation can set in and before you know it the entire country is devastated. During the great depression labor supply and demand played a major role on everything that happened during the great depression. The great depression is a perfect example of what labor supply and demand does and how big of an impact it can have on the overall economy.

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