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Week 3 checkpoint Black Death Labor Supply and Demand

The Back Death known as the Bubonic plague almost wiped out Europe’s population. It was estimated that the plague killed about one-third to one-half of their population. The lower class population felt the pressure the most because of already living in unsanitary conditions. The Bubonic plague led to an abrupt rise in real wages, for both agricultural and urban artisans.
The reduction of Europe’s population had an enormous effect on its economy. It started off with a large surplus of food and goods. The ones who survived the outbreak went on a spending spree, which in turned caused inflation to kick in due to the massive amounts of money in the hands of the people. Because of this prices started to rise. The depopulation resulted in the falling of grain prices and therefore in falling rents on grain producing lands. The rise in real wages was a product of the fall of the cost of living. This was determined by the bread grain prices. Without being able to produce grain it came in high demand.
The decline in population also led to a great hole in labor availability. Due to the decline in population the prices for labor rose. Skilled craftsman realized the leverage they had and began demanding even higher wages. Prices were rising everywhere and the competition for labor became so great. Eventual action need to be taken to keep the labor wages down.

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Before and after the Black Death:money, prices, and wages

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