Analyze why cotton and oil prices dropped in Texas at the beginning of the Great Depression
farmers and refinery owners had to fire black and Mexican American workers to provide jobs for the white labors
farmers and refinery owners often want against government orders to produce high surplus to make up for profit losses
farmers that were finally owners were allowed by the state and federal governments to produce large amounts of these natural resources to make up for profit losses
formers and refinery owners receive no federal relief funding during the Hoover administration
There are several factors that contributed to the drop in cotton and oil prices in Texas at the beginning of the Great Depression. These include:
1. Overproduction: Farmers and refinery owners, facing profit losses, often went against government orders to produce high levels of surplus. This overproduction led to a surplus in both cotton and oil, which ultimately resulted in a decrease in prices.
2. Lack of government support: Farmers and refinery owners received no federal relief funding during the Hoover administration. This lack of support meant that these industries were unable to receive assistance or subsidies to offset their losses.
3. Racial and labor dynamics: To provide jobs for white laborers during an economic downturn, farmers and refinery owners were forced to fire black and Mexican American workers. This reduction in labor availability further impacted the production and profitability of these industries.
4. Government regulations: Farmers who owned land were allowed by the state and federal governments to produce large amounts of cotton and oil in an attempt to make up for their profit losses. The increase in production further worsened the surplus issue, contributing to the drop in prices.
In summary, the drop in cotton and oil prices in Texas during the Great Depression can be attributed to a combination of overproduction, lack of government support, racial and labor dynamics, and government regulations that intended to alleviate financial strains but ultimately exacerbated the surplus and affected prices negatively.