Based on the fascinating sub-culture of dance marathons that popped up as a form of exploitative Depression-era entertainment, They Shoot Horses Don't They was written by Horace McCoy in 1935 based on his own experience as a bouncer at some of them in California. It took over three decades to adapt the film. By that time, it was more of a time capsule than period commentary.
Both the film and book feature an extremely depressed character who has to be put to death through assisted suicide (sorry about the spoiler but the title sort of gives it away in both case), but the book portrays the lead character as someone who can't see the hope in her lot in life whereas the film is more of a direct commentary on how capitalism has created a crapsack world for the people at the bottom. After all, they're forced to dance for their supper, what could be more metaphorical.
First some background:
The idea of a free dance contest with the last man standing winning a big prize seems like an easy idea to romanticize alongside Gatsbyesque parties. At the time, dancing was associated with the liberation of the jazz age and a healthy rebellion against puritan mores. But with the desperation bought on by the depression, contestants became more and more adept at gaming the system. The contestants learned to sleep standing up and were increasingly ok with a small chance in hell of getting a prize because the guarantee of free meals, health care, and shelter was enough. The promoters made bank on offering these as cheap sideshow attractions where people could spectate and feel superior to the dancers.
Now back to the film:
In the world of dance marathons, we find Gloria (a young Jane Fonda) who is pretty much at the end of her rope in terms of hope for herself or the world around her. It's a novelty in and of itself that a character in such a state of depression was made the protagonist of a film in the first place. The book offers some more backstory about how she had to enter into a sexless marriage in Texas just to have a roof over her head. Gloria exists in a time and place where she doesn't have agency to earn a living. Her decision to go to Hollywood isn't driven by the kind of "42nd Street"-type dream of being a star. Rather she just thinks she might be able to make some cash as an extra.
Gloria is paired up with a down-on-his-luck actor named Robert (Michael Sarrazin, if you haven't heard of that name, don't worry) who has grander artistic ambitions (again, the book delves into this by mentioning that he'll use his prize money to finance a short film) but needs the immediate money of a good project.
The story features an eclectic cast of characters for the other dancers. In both the book and the film, experienced couple Ruby and James (a young Bruce Dern and Bonnie Bedelia) represent the true-to-life phenomenon of professional dancers entering the contests to provide fame recognition. There's also a temptress for Robert played by Susannah York and a chipper elderly sailor (who only exists in the film) played by Oscar-winner Red Buttons.
In the book, there's also a contestant who is forced to leave the contest because he's wanted for murder, a jealous Spanish dancer, Pedro, who shoots the organizer in frustration, and her partner who doubles James and Ruby in being experienced and providing exposition.
One might assume these characters were eliminated in the film adaptation because they have their own storylines that complicate the central theme of doom. Pedro, like Gloria, chooses to want to throw away his future which is contrasting to those who play by the rules of the contest. I originally assumed that Buttons' character was added into the cast as a way to add color and diversify the age range, but his demise (I won't spoil his fate completely) adds to the sense of doom.
And then there's the devious show promoter, Rocky, who riles up the audience on the mic. Character actor Gig Young won an Oscar for the role as a man who knew how to keep the crowds entertained. As York's character has a nervous breakdown, he shows a shred of humanity in getting her to safety, but for the most part, the film hinges on the slow reveal of just how villainous he and the contest are.
The book actually splits Rocky's role into two: Rocky is the announcer but the man behind the scenes is his boss Socks Donald takes over behind the scenes. For the most part, they're relatively moral people trying to make a buck.
Additionally, Gloria's negativity is countered with far more first-person narration talking about just how miserable Robert is because Gloria is his partner. It's possibly repeated so often because Robert is dealing with guilt for shooting Gloria.
Book vs Movie
The movie has the electric performances of Jane Fonda, Bruce Dern, Gig Young, and Red Buttons, but the book is more than just a cesspool of depression. A depressed character in a depressed world isn't as rich as a depressed character in a difficult world whose choice to give up is contrasted by various people with the same circumstances across the spectrum of hope.
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