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 the United States Congress
On October 29, 1929, a day known in history as Black Tuesday, the New York Stock Exchange experienced a significant crash and the United States, as well as most of the world, would enter a major recession. In response, President Herbert Hoover and the Republican Congress passed the Smoot Hawley Tariff Act. However, it has been recognized that this act only made economic condition far worse. The 1930 midterm election saw the Republicans barely maintain control of the US House of Representatives and US Senate. Shortly after the 1930 midterm election, however, special elections were held to replace 19 House of Representative-elects who died, and Democrats would gain a four-seat majority in the US House of Representatives as a result of the outcome of these elections. In the 1932 US Senate elections, the Democrats easily regained control over the US Senate once again; this 1932 election also saw Franklin Roosevelt get elected US President as well, and Roosevelt could now begin his historic New Deal policies through the Democrat-dominated US Congress, and could bring the US out of the Great Depression for four years.