Deflation
Deflation occurred periodically in the U.S. during the 19th century (the most important exception was during the Civil War). This deflation was at times caused by technological progress that created significant economic growth, but at other times it was triggered by financial crises — notably the Panic of 1837 which caused deflation through 1844, and the Panic of 1873 which triggered the Long Depression that lasted until 1879. These deflationary periods preceded the establishment of the U.S. Federal Reserve System and its active management of monetary matters. Episodes of deflation have been rare and brief since the Federal Reserve was created (a notable exception being the Great Depression) while U.S. economic progress has been unprecedented.
History of conservatism in the United States
The Great Depression which followed the 1929 stock market collapse led to price deflation, massive unemployment, falling farm incomes, investment losses, bank failures, business bankruptcies and reduced government revenues. Herbert Hoover's protectionist economic policies failed to halt the depression, and in the 1932 presidential election, Democratic Franklin D. Roosevelt won a landslide victory.