Analyze why cotton and oil prices dropped in Texas at the beginning of the Great Depression.(1 point)
Responses
Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.
Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.
Farmers and refinery owners were allowed by state and federal governments to produce large amounts of these natural resources to make up for profit losses.
Farmers and refinery owners were allowed by state and federal governments to produce large amounts of these natural resources to make up for profit losses.
Farmers and refinery owners had to fire Black and Mexican American workers to provide jobs for White laborers.
Farmers and refinery owners had to fire Black and Mexican American workers to provide jobs for White laborers.
Farmers and refinery owners received no federal relief funding during the Hoover administration.
Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.
Farmers and refinery owners were allowed by state and federal governments to produce large amounts of these natural resources to make up for profit losses.
Farmers and refinery owners had to fire Black and Mexican American workers to provide jobs for White laborers.
Farmers and refinery owners received no federal relief funding during the Hoover administration.
All of these factors contributed to the drop in cotton and oil prices in Texas at the beginning of the Great Depression.
Firstly, farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses. This led to an oversupply of cotton and oil, which caused prices to drop due to the lack of demand.
Secondly, state and federal governments allowed farmers and refinery owners to produce large amounts of these natural resources in an attempt to stimulate the economy and make up for profit losses. However, this only exacerbated the oversupply problem and further drove down prices.
Additionally, the firing of Black and Mexican American workers in favor of White laborers contributed to the drop in prices. By reducing the workforce, farmers and refinery owners hoped to lower expenses and increase profits. However, this had negative effects on the economy and further reduced demand for cotton and oil.
Lastly, the lack of federal relief funding during the Hoover administration also played a role in the drop in prices. Without financial support, farmers and refinery owners faced additional economic hardships, which further impacted their ability to maintain production levels and keep prices stable.
Overall, a combination of factors such as oversupply, government policies, labor issues, and lack of financial support contributed to the drop in cotton and oil prices in Texas at the beginning of the Great Depression.