Labor Market Structures

Curbside Pickup

Cloud 9 is offering curbside pickup so that their lazier customers can have a better shopping experience. Monopolistically competitive firms often compete on non-price aspects, so offering curbside pickup may entice new customers to increase their demand. Since they aren’t hiring more workers, the employees are now required to work more, which they don’t see as fair. This increased demand following curbside pickup should result in an increased demand for labor, but the workers only seem to be working more.

Principles Supply & Demand Unemployment

Paying to Have Your Photo Taken

Glenn has brought all of his previous foster children to the store so that he can get a group photo with all of them. While working in the backroom, Glenn mentions to Cheyenne that his family used to own a photo studio. Cheyenne is surprised that people used to pay to have their picture taken since she has grown up with digital cameras and cell phone cameras. With these inventions, there’s really not a reason to pay to have your photo taken, but Glenn says it was mainly for families and lonely women with dogs.

Growth Labor Supply & Demand

Cell Phones: Innovative or Destructive?

It’s back to school time and everyone has flooded the store to buy calculators, notebooks, dictionaries, and planners, but these are all items that come with a smartphone so it makes those products obsolete for most individuals. Joseph Schumpeter was a popular economic philosopher who pioneered the theory of creative destruction, which occurs when new innovations replace old industries. The benefits are a higher standard of living, but at the cost of jobs in those old industries.

Labor Unemployment

Good Bye Travel Agencies

Structural unemployment occurs when the skills and trades are no longer in demand from the general population rather than market fluctuations. Adam’s girlfriend, Amy, quickly points out that his travel agency failed because people use the internet to book travel and no long need travel agents.