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Xeco 212 Week 3 Checkpoint

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The Great Depression started in 1929 and lasted until 1939 and “was economic slump in North America, Europe, and other industrialized areas of the world” (“About the Great Depression n.d”). This is because of a chain of events that affected the economy of that time. In the United States billions of dollars were lost buy people and demands of goods and service dropped after the stock market crash. The affect that the market crash had on the economy was that it lowered the equilibrium which created an excess amount of service and commodities. In general this would have brought an increase in the demand of goods and more wealth for different individuals due to the price being lowered for service and goods. This had the opposite effect on the economy and many people became unemployed due to their services was not needed. During this period of time many people had lost their jobs and had very little or no money to spend. The economy was on a down word spiral and the shortage of jobs was affecting the economy. Even with the banks having money for one to borrow people were saving their money because they were afraid to borrow because they could not pay it back. Particularly in the United States, where, at its nadir in 1933, 25 percent of all workers and 37 percent of all non farmers were completely out of work” (Great Depression, n.d). It even came to a point during the depression that people starved, nonfarm workers where without a job, and homeless vagabonds sneaked on trains that crossed the nation. Many people followed a false hope and migrated to California where jobs were to plentiful. The way the economy was during the Great Depression had an affected on everything to do with labor supply and demand.

Reference About the Great Depression. (n.d). Retrieved from http://www.english.illinois.edu/maps/depression/about.htm Great Depression . (n.d). In Wikipedia. Retrieved from http://en.wikipedia.org/wiki/Great_Depression Gene Smiley. "Great Depression." The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. Retrieved November 23, 2012 from the World Wide Web: http://www.econlib.org/library/Enc/GreatDepression.html…...

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