Analyze why cotton and oil prices dropped in Texas at the beginning of the Great Depression
farmers and refinery owners receive no federal relief funding during the Hoover administration
farmers and refinery owners had to fire black and Mexican American workers to provide jobs for the white laborers
farmers and refinery owners often went against government orders to provide high supplies to make up for profit losses
numbers and refinery owners were allowed by the state and federal governments to produce large amounts of these natural resources to make up for profit losses
The drop in cotton and oil prices in Texas at the beginning of the Great Depression can be attributed to several factors:
1. Lack of federal relief funding: Farmers and refinery owners in Texas did not receive any federal relief funding during the Hoover administration. This meant they lacked necessary financial support to sustain their businesses during the economic downturn, leading to a decline in prices.
2. Firing of black and Mexican American workers: In order to provide jobs for white laborers, farmers and refinery owners had to lay off or fire their black and Mexican American workers. This led to a reduction in production capacity, which in turn impacted the prices of cotton and oil.
3. Defiance of government orders: Farmers and refinery owners often went against government orders to provide high supplies to make up for profit losses. Instead, they might have opted to reduce production levels to control costs and maintain some profitability. This reduction in supply further contributed to the drop in prices.
4. Allows for increased production: The state and federal governments, recognizing the financial struggles of farmers and refinery owners, allowed them to produce large amounts of cotton and oil to compensate for profit losses. This increased production led to higher supply levels and consequently lower prices.
Overall, the combination of limited financial support, workforce restructuring, reduction in supply, and increased production levels played a role in the drop in cotton and oil prices in Texas during the onset of the Great Depression.