Labor Supply and Demand of the Technology Boom of the 90's

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Labor Supply and Demand of the Technology Boom of the 1990’s The technology boom of the 90’s was a very important time in American history. During this time new technologies were being developed and causing a frenzy in the everyday life of many people, companies, and investors. As new technology, like computers and other electronic, devices became available the demand for these devices became in such demand that it encouraged other manufacturers to produce more technologies to compete with the demand. For instance, AOL was the primary internet provider during the internet craze, which had a modem speed of 56K. Other phone companies and cable companies got in on the market and providing the internet to customers using new fiber optic cables that provided internet speed 100 times faster than the 56K speed previously provided. The new technology made life for many individuals easier however; in some cases it was devastating, as the development of new technologies, like answering systems, made certain positions obsolete; reducing the number of jobs available in some fields. In addition, the new technologies made further education regarding how to use these new devices or systems vital to not only employees but also to individuals who found themselves in need of employment. Companies developed machines that could replace the need for paid employees and could eliminate error; this is especially true in the car manufacturing industry. Although, the new technologies caused many job loses, in fact, it did create numerous jobs, and some reports say 24 million. By 2000, the unemployment rate fell to four percent; though unemployment peeked at 7.5 in 1992, it continuously fell after that year. Once people developed a “must have” state of mind when it came to the newly developed devices, the demand grew which in turn created a higher retail demand. As the demand

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