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 multiple factors that contributed to the drop in cotton and oil prices in Texas at the beginning of the Great Depression:
1. Overproduction: Farmers and refinery owners, in an attempt to make up for profit losses, went against government orders and produced high surpluses of cotton and oil. This led to an oversupply in the market, causing prices to drop.
2. Job displacement: To accommodate the white labor force, farmers and refinery owners fired black and Mexican American workers, further exacerbating the unemployment crisis. This reduced demand for goods, including cotton and oil, leading to a decline in prices.
3. Lack of federal relief funding: Farmers and refinery owners did not receive any federal relief funding during the Hoover administration. This meant that they had little financial support during the economic downturn, making it difficult for them to sustain their operations and maintain profitability. This lack of support contributed to the drop in prices.
4. Limited purchasing power: The general population was hit hard by the economic effects of the Great Depression, resulting in reduced purchasing power. As people had less disposable income, the demand for goods, including cotton and oil, decreased, leading to a decline in prices.
In conclusion, the drop in cotton and oil prices in Texas at the beginning of the Great Depression was primarily driven by overproduction, job displacement, lack of federal relief funding, and limited purchasing power. These factors created an imbalance between supply and demand, contributing to the decline in prices.