Analyze why cotton and oil prices dropped in Texas at the beginning of the Great Depression.(1 point) Responses
1. Oversupply: One reason for the drop in cotton and oil prices in Texas at the beginning of the Great Depression was the oversupply of these commodities. Both industries had experienced significant growth in the preceding years, leading to an excessive supply of cotton and oil in the market. This oversupply caused prices to decline as demand could not keep up with the available inventory.
2. Reduced demand: The economic downturn during the Great Depression resulted in a decrease in demand for cotton and oil. With people facing financial hardships and a decline in purchasing power, the demand for these commodities decreased significantly. As a result, prices dropped as producers struggled to find buyers for their products.
3. International factors: The global economic conditions during the Great Depression also affected cotton and oil prices in Texas. The worldwide economic recession led to a decrease in international trade, affecting the demand for commodities like cotton and oil. Additionally, the presence of high tariffs and trade barriers further restricted the export market, reducing the demand for these Texas-produced goods and causing prices to plummet.
4. Financial instability: The collapse of the stock market in 1929 and the subsequent financial crisis intensified the economic downturn and had a ripple effect on various sectors, including agriculture and energy. Financial instability reduced investors' confidence and led to a decrease in investment in these industries, which further contributed to the drop in cotton and oil prices in Texas.
5. Technological advancements: The Great Depression coincided with advancements in technology, particularly in the oil industry. The discovery and development of new oil fields in other regions reduced the dominance of Texas in oil production. This increased competition and further contributed to the decline in oil prices.
It is important to note that these factors are not exhaustive and may interact with and influence each other. The Great Depression was a complex and multifaceted event, and various interconnected factors played a role in the drop in cotton and oil prices in Texas at the time.
1. Farmers and refinery owners often went against government orders to produce high surpluses to make up for profit losses.
2. New Deal policies led to greater involvement by the federal government in providing direct assistance to those in need.
3. She ordered Texas banks to close for a week to prevent people from withdrawing their money.
4. They both provided a stronger sense of community for people going through difficult times.
5. Underrepresented populations’ voting power was limited to a few minority-majority districts.
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