Xeco212 Wk3 Assignment

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One of the most severe economic downfalls for the United States was the great depression. After World War II, which occurred from 1930 to early 1940’s, there was a drastic decrease in jobs, mostly in the industrial area. Businesses were forced to reduce the amount of labor needed in effort to maintain profitable, which in turn caused an excess of labor. Due to the lack of industrial work, many people were left jobless, which ultimately caused many people to remain without income, especially after the collapse of banks had occurred. Due to WW2, many of these people were not able to have jobs as businesses were not selling goods as general income for middle and lower class people were scarce. This caused businesses to lower wages, which then caused a decrease in workers. During this time, prices for products had raised, but unfortunately, the people could not afford to purchase any of these items as lack of income played a huge role. This caused a shift in supply and demand, as the supply was good, but demand was minimal. By about 1933, approximately 25% of people were unemployed. The equilibrium dropped, as there was an excess of goods and services. Without job security and banks shutting down, the American people had no other forms of income. Many factors come to play in this decline of supply and demand. WW2 caused the U.S to reduce work as many of the men were fighting the war. The industrial work had drastically dropped which ultimately created a stop in the demand for goods, which were often shipped to different countries. The war was the overall cause for this drastic impact on the…...

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