Submit a 250- to 300-word response addressing one of the following historical events in terms of labor supply and demand: the Great Depression, the Luddite Revolt, the Black Death, or the technology boom of the 1990s. Include the following:
What was the impact on the supply and demand of labor on one sector of the labor market?
Explain the factors that affected labor demand and labor supply in the chosen historical example.
During the Great Depression, so many parts of American life were affected, however, in the labor market, one sector greatly affected was the steel industry. Although it rose greatly in the industrial revolution, the steel industry, just as many others took a tremendous hit during the Great Depression. As for supply of steel, there was no reason that it took a drop in supply, however, due to the demand being so low because nobody was able to buy, production was halted and supply stayed where it was. The demand of labor for steel production also dropped because the supply was already there, however, the demand was not so there was no sales, thus no reason to continue creating new steel products. Another thing that greatly affected the supply of steel was the fact that even overseas, there was no steel really being used at the time, and therefore when we hit the Great Depression, trade overseas also slowly halted. The Great Depression created a place where wealth was not an option, and struggling for money was seen everywhere. With this being the case, we saw problems in all industries, however, the one that I think was really affected tremendously as I said was the steel market because of the supply already being there, yet the demand was diminishing very quickly.