Which parts of New Mexico's economy were hurt by the Great Depression?

The Great Depression, which began in 1929 and lasted through the late 1930s, had severe effects on many parts of the New Mexico economy. New Mexico, like other states, faced economic hardship during this period.

Key sectors of New Mexico's economy that were hurt by the Great Depression included:

1. Agriculture: The farming sector was one of the most significantly affected areas. Prices for agricultural products plummeted, leaving many farmers unable to cover their costs of production. When combined with the environmental disaster of the Dust Bowl, which hit the plains states in the 1930s, New Mexico's farmers struggled with both economic and ecological crises.

2. Mining: The mining industry was another sector heavily impacted by the Great Depression. New Mexico was rich in mineral resources like silver, gold, and coal. However, demand for these resources fell dramatically during the Depression, which led to mine closures and significant job losses in the sector.

3. Livestock Industry: The livestock industry also suffered during the period, as falling prices and demand affected ranchers. Overgrazing and drought exacerbated the problems in the region, leading to a reduction in meat production and financial strain for ranchers.

4. Employment and Labor: As industries contracted, so did the job market. Unemployment rates soared, leading to widespread financial hardship and poverty. With less income, people spent less on goods and services, which affected local businesses and service providers.

5. Banking and Finance: The banking industry too faced difficulties as a result of the economic downturn. With customers unable to repay loans and a rise in bank runs, several banks collapsed, leading to a loss of savings for many individuals and further reducing the available capital for businesses and consumers.

6. Government works and services: Public works and services were also hindered due to the Great Depression. With a decrease in tax revenues, state and local governments had less money to spend on infrastructure, education, and other public services. This reduction in government spending further compounded economic difficulties.

These are just some of the sectors that faced severe challenges during the Great Depression in New Mexico.